2012

G.PRANITHA

[INDUSTRIAL
RELATIONS]
A STUDY ON
INDUSTRIAL RELATIONS
WITH REFERENCE TO

RASHTRIYA ISPAT NIGAM LTD

VISAKHPATNAM STEEL PLANT
A REPORT SUBMITTED BY

G. PRANITHA.
Under the esteemed guidance of
Mr. O.Ram1Mohan rao.

(AGM) TRAINING
RINL, VISAKHAPATANAM.
In partial fulfillment for the award of degree of
BACHELOR OF BUSINESS MANAGEMENT
IN
ADITYA DEGREE COLLEGE

KAKINADA.

DECLARATION
I hereby declare that this project entitled

INDUSTRIAL RELATIONS with

reference to RASHTRIYA ISPAT NIGAM LIMITED,

VISAKHAPATNAM is

the original work done by me and submitted to DEPARTMENT OF COMMERCE

AND MANAGEMENT, ADITYA DEGREE COLLEGE

in partial fulfillment

requirement

BACHELOR OF BUSINESS

for

the

award

of

the

degree

of

MANAGEMENT and this has not been submitted

publication any time .

of the

to any other university

or

PLACE: KAKINADA

SIGNATURE

DATE:

(G.PRANITHA)

CERTIFICATE
This is to certify that the project work entitled INDUSTRIAL RELATIONS with
reference to RASHTRIYA ISPAT NIGAM LIMITED,

VISAKHAPATNAM

submitted by G.PRANITHA is partial fulfillment for the award of B.B.M degree is a bonified
work carried out by him under my guidance and supervision.

DATE:

GUIDE

Mr. O.RAM MOHAN

RAOCERTIFICATE

PLACE:

This is to certify that the Project Work titled A STUDY ON THE SIGNIFICANT
FACTORS

CONTRIBUTING

TO

THE

INDUSTRIAL

RELATIONS

AT

VISAKHAPATNAM STEEL PLANT with reference to VISAKHAPATNAM STEEL

PLANT (RINL) is a bonfide work carried out by G.PRANITHA of ADITYA DEGREE
COLLEGE KAKINADA, in partial fulfillment for the award of degree of BBM affiliated to
ANDHRA UNIVERSITY VISAKHAPATNAM, has been done under my guidance and to the
best of my knowledge it is their original work.

Place: Visakhapatnam
Date:

O.R.M Rao
AGM (HRD)

ACKNOWLEDGEMENT

I feel it is my duty and honour to acknowledge all those who have extended
their guidance and warm support in completing my Project Work.
Firstly, It is my privilege to thank Mr.O.RAM MOHAN RAO SIR,

AGM HRD Group IN RINL for providing state of the art facilities experienced and
talented faculty members.
Secondly, I thank Mr R.APPA RAO SIR (IR Personnel), for his
continuous support and encouragement in my endeavor.
I express my deep sense of gratitude to B. UMA MAHESHEWARE
RAO SIR Sr. MANAGER (Personnel Sinter plant) whose guidance I could make a
thorough and complete copy of my Project Work.
I thank Mr. O.RAM MOHAN RAO (H.R) of RASHTRIYA
ISPAT NIGAM LIMITED, VISAKHAPATNAM for providing Valuable information
for my Project Work.

(G.PRANITHA)

CONTENTS
CHAPTER-I
1. INTRODUCTION
2. OBJECTIVES
3. NEEDOF THE STUDY
4. METHODOLOGY
5. LIMITATIONS

CHAPTER-II
INDUSTRY PROFILE

CHAPTER-III
COMPANY PROFILE

CHAPTER-IV
THEORETICAL FRAME WORK

CHAPTER-V
DATA ANALYSIS AND INTERPRETATION

CHAPTER-VI
SUMMARY, FINDINGS,SUGGESTIONS & CONCLUSION

BIBLIOGRAPHY
QUESTIONARE
6

CHAPTER-I
INTRODUCTION
OBJECTIVE
NEED FOR THE STUDY
METHODOLOGY
LIMITATIONS

INTRODUCTION
Definitions
Industrial relation means the relationship between
employees and management in the day-to-day working of industry. But the
concept has a wide meaning. When taken in the wider sense, industrial relation
is a set of functional interdependence involving historical, economic, sociopsychological, demographic, technological, occupational, political and legal
variables. P.Subba rao

Industrial relations are the relationships between

employees and employers within the organizational settings. The field of
industrial relations looks at the relationship between management and workers,
particularly groups of workers represented by a union. Industrial relations are
basically the interactions between employers, employees and the government,
and the institutions and associations through which such interactions are
mediated.
Out of all the Human Resource Management problems that have emerged on the
corporate forefront in recent times, the problem of Industrial Relations has
achieved more prominence. The increased popularity of this aspect of Human
Resource Management is due to one single factor that it deals with people who
are the base of Industry - a class of people that makes things to happen.

In fact the very relationship between labour and

management itself creates a host of opportunities; they bring parties to conflict.
With growing prosperity workers have organized their own Trade unions and thus
gained a bargaining power enabling them to establish their rights in the
Industrial society.
Industrial Relations is concerned with the relationship
between management representing the holders of capital and Trade unions
representing the holders of labour power regarding the employment,
unemployment, conditions of employment and unemployment and conditions of
work. These Industrial Relations differ from one country to country. The type of
Industrial Relations in a country depends upon the Technological advancement,
employment opportunities, type of trade unions, Government Legislations and
economic conditions.

Coming to India, which is rapidly transforming from the

agrarian system to the Industrial system. The country with its vast population
has very less percentage of working class and out of this only one fourth are
organized. But the relations that influence such a small segment of workers
have a far-reaching implication not only on the attitude of un-organized workers
but on economy as a whole.

Indian Industrial Relations Spectrum

The spectrums of Industrial Relations scenario in India today present four
distinct pictures.
Scenario-1:
A sweet heart relationship scenario representing Industrial peace and harmony
characterized by

Mutual trust

Mere perfect collaboration and

Even collusion with unions

Scenario-2:
A cat and Dog scenario, resulting in frequent conflict, work-stoppages and
strikes, lock-outs, characterized by

Complete distrust

Mutual blackmailing on issues and

Product losses

Scenario-3:
A Blow-hat, Blow-cold
characterized by

scenario

some

how

Some time peace

Some time conflict

Most of the organizations fit into this category.

pulling

along

Scenario-4:
A peace in the Grave or Marriage of convenience situation
characterized by

Apparent peace

relationship

Patching of an issue

Self-out of managerial authority

Constant sickness of the industry

Most of the sick Government Industries are the
examples. While certain aspects of Industrial Relations scenario have been cited
above a close examination of the government, judiciary, a worker involved in the
Industrial relations scenario also requires proper appreciation.
The Government has also stepped in and played an important
role in establishing harmonious Industrial Relations, partly because it has itself
become an employer of millions of workers but mainly because it has enacted a
vast body of legislation to safeguard the rights of industrial workers and
management by enlisting cooperation of both. The objectives of Industrial
Relations are to facilitate good relationship between employers and employees.
The quality of this relationship differs Company to Company,
industries and economies. These relationships are based on class contradictions
and antagonism historically born out of the social structure, which is determined
by the mode of production.
Steel Comprises one of the most important inputs in all
sectors of the economy. Steel Industry is both a basic and core industry. The
economy of any nation depends on a strong base of iron and steel Industry in
that nation. The Steel Industry is both capital and labour intensive. The working
conditions are also very hazardous. So maintenance of Good Industrial Relations
plays a vital role since it has directive impact on the production and productivity
of an industry.
Coming to Visakhapatnam Steel Plant a Public Sector Unit,
study of Industrial Relations at Visakhapatnam Steel Plant is very helpful to me to
get experience on Industrial Relations and one more feature the study was
carried on at a critical movement when contract labour unions were organizing
various demonstrations / agitational programmes demanding
hike in the
minimum wages of the Contract Labour working in various units of
Visakhapatnam Steel Plant.

Major Players to Industrial Relations:

10

Simply stated, industrial relations are the outcome of the employment relations
in industry. The government of a nation influences these relations to a great
extent. Thus, there are three major players in industrial relations.

Workers and their Organizations

The personal characteristics of workers, their culture, educational attainments,
qualifications, skills, attitude towards work, etc play an important role in
industrial relations. Workers organizations, known as trade unions are political
institutions. Trade unions are formed for safeguarding the economic and social
interests of the workers. They put pressure on the management for the
achievement of these objectives.

Employers and their Organizations

The Employers are a very important variable in industrial relations. They provide
employment to workers and try to regulate their behavior for getting high
productivity from them. Industrial unrest generally arised when the employers
demand from the workers and other benefits. In order to increase their
bargaining power employers in several industries have organised Employers
Associations. These associations put pressure on the trade unions and the
government.
They also participate in tripartite bodies constituted by the
government to regulate industrial relations.

Government
The Government exerts an important influence on industrial relations through
such measures as providing employment, intervening in working relationships
and regulating wages, bonus and working conditions through various laws
relating to labour. The government keeps an eye on both the trade unions and
employers organizations to regulate their activities in the interest of the nation.

11

OBJECTIVES
1. Since VSP is a government sector origination having heavy production
units, there will be a streamed lined producer of IR management.
2. The vast work force indicates
executive, non-executives who are
educated will influence the expected IR scenario.
3. since many of the jobs are offloaded taking the help of the contract
laborer, the IR scenario is also excepted to have multifold dimensions in
the company due to the presence of many contract laborer
4. In view well established welfare measures, satisfactory wages and other
fridge benefits, it is also expected that the wants and demands of the
employees at large may have a unique IR situations.
5. To study different mechanism adopted by the company in foreseeing the
IR eventually for maintaining balance to attain favorable IR situation

12

NEED OF STUDY

RINL is one of the leading companies in iron and steels.

As IR management plays an crucial role in VSP.

To study about the IR in time is the right place.

RINL (vizag steel) have 22 general registered unions, so IR here plays a prominent
role.

13

METHODOLOGY
1. The Project entitled Industrial Relations Scenario at Visakhapatnam Steel Plant and
its impact on Production and Productivity was carried out for 8 weeks at
Visakhapatnam Steel Plant. The study was carried out by collecting; analyzing the
data collected both from Primary and Secondary sources.

2. Primary Data was collected by discussions with managers, employees and trade union
leaders. A Questionnaire was prepared and administered on a sample of 100
containing executives (40), non-executives (40) and trade union leaders (20).

3. The data collected is analyzed to know the perception of executives, non-executives

and trade union leaders towards their role in maintaining the cordial Industrial
Relations.

4. Secondary data is collected from Company Records, In-house Magazines, Internet

regarding the Industry and company profile and also about Industrial Relations events
in Visakhapatnam Steel Plant right from its inception.

14

LIMITATIONS

The data opinions, observations and conclusions expressed here are collected by
survey and literature provided by Visakhapatnam Steel Plant. Following are the few
constraints faced during the study.

One of the most limiting factor for a thorough and complete study of the subject has
been the insufficient period of study.

The survey was conducted on the sample based upon random selection, random
selection has its own defects.

Elaborate study was not possible due to lack of financial resources.

Executives are not available because they were involved in various activities.

The size of the sample representing the universe is very small.

15

CHAPTER II
INDUSTRIAL PROFILE

16

INDUSTRIAL PROFILE
INTRODUCTION
Steel is crucial to the development of any modern economy and
is considered to be the backbone of human civilization. The level of per capita consumption
of steel is treated as an important index of the level of socioeconomic development and living
standards of the people in any country. Steel industry was in the vanguard in the liberalization
of the industrial sector and has made rapid strides since then. Output has increased, the
industry has moved up in the value chain and exports have raised consequent to a greater
integration with the global economy. At the same time the domestic steel industry was facing
new challenges. The demand too has not improved to significant levels. The litmus of the
steel industry will be to surmount these difficulties and remain globally competitive.

HISTORY OF STEEL:
Steel was discovered by the Chinese under the reign of Han
dynasty in 202BC till 220AD.Prior to steel, iron was a very popular metal and it was used all
over the globe. Even the time period of around 2to 3 thousand year before Christ is termed as
Iron Age as iron was vastly used in that period in each and every part of life. The Chinese
people invented steel as it was harder than iron and it could serve if it is used in making
weapons from china, the process of making steel from iron spread to its south and reached
India.
High quality steel was being produced in southern India in as early as 300BC.around
9 century AD, the smiths in the Middle East developed techniques to produce sharp and
flexible steel blades. In 17th century, smiths in Europe came to know about a new process of
cementation to produce steel.
th

THE GLOBAL STEEL INDUSTRY:

17

The current global steel industry is in its best position in

comparing to last decades. The price has been rising continuously. The demand expectations
for steel products are rapidly growing for coming years. The shares of steel industries are also
in a high pace. The steel industry is enjoying its 6 th consecutive years of growth in supply and
demand. And there is many more merger and acquisitions which overall buoyed the industry
and showed some good results. The supreme crisis has lead to the recession in economy of
different countries, which may lead to have a negative effect on whole steel industry I coming
years. However steel production and consumption will be supported by continuous economic
growth.
Iron and steel making as a craft has been known to India for a long time. However, its
production in significant quantities is known only after 1900.

Steel Industry in India:

Steel has been the key material with which the world has reached to a developed
position. All the engineering machines, mechanical tools and most importantly building and
construction structures like bars, rods, channels, wires angles etc are made of steel for its
features being hard and adaptable.
After independence, successive governments placed great emphasis on the
development of an Indian steel industry. In financial year 1991, the six major plants, of which
five were in the public sector, produced 10 million tons. The commissioning of Tata Iron &
steel companys production unit at Jamshedpur, Bihar in 1911-12 heralded the beginning of
modern steel industry in India.
Following independence and the commencement of five year plans, the government of
India decided to set up four integrated steel plants at Rourkela, Durgapur, Bhilai, and
Bokaro, the Bokaro steel plant was commissioned in 1972.The most recent addition is a
3MT integrated steel plant with modern technology at Vishakhapatnam. Steel authority of
India (SAIL) accounts for over 40% of Indias crude steel production.
SAIL owns mines and subsidiary companies. Production capacity have recorded a year-onyear growth rate of 13.4% ,15.7% ,11.7% ,in net sales operating profit and net profit,
respectively ,during the second quarter of 2007-2008.
Soaring demands by sectors like infrastructure, real estates and automobiles, at home
and abroad, has put Indias steel industry on the world steel map.

Steel production in India:

India is one of the few countries where the steel industry is poised for rapid growth.
Steel production of India accounted for 14.33million tons in 1990-19991, which gradually
increased to 36.12 million tons in 2003-2004.today India plays a significant role in the
production of steel in the world. Steel demand continued to remain upbeat in 2008-2009 with
consumption of finished steel growing by decent 6.8%during April-may 2008.during April
2008 finished steel output rose by modest 3.8%.further in may it increased by 5.2%.aggregate
production growth during April-may stood at 5.1% in view of no major capacities coming on
18

stream we estimate finished steel production to touch60 million tons in 2008-2009.in the
event of an upward revision in the figure of 2007-2008,tha actual growth in steel production
in 2008-2009 would turn out to be less as compared to our estimates.

Major players of Steel in India:

Public sector:
Steel authority of India Limited(SAIL)
It is a company registered under the Indian companies act, 1956and is an enterprise of
the government of India. It has five integrated steel plants at Bhilai (Chattisgarh) ,Rourkela
(Orissa), Durgapur (West Bengal), Bokaro (Jharkhand),and Burnpur(West Bengal). SAIL has
three special and alloy steel plant at Salem(Tamil Nadu) and Visvesvaraya iron and steel plant
at Bhadravati (Karnataka).

Rashtriya Ispat Nigam ltd. (RINL)

RINL , the corporate entity of Vishakhapatnam steel plant is the first shore based
integrated steel plant located at Vishakhapatnam in Andhra Pradesh. The plant was
commissioned in August 1992 with a capacity to produce 3 Million Tonnes per Annum of
liquid steel. RINL has prepared a road map to expand the plants capacity up to 16 MTPA in
phases.

Metal scrap trade corporation ltd. (MSTC)

MSTC Ltd. was set up on the 9 th September, 1964 as a canalising agency for the export
of scrap from the country. The company has also established an e-auction portal and
undertakes e-auction of coal, diamonds and steel scrap and developed an e-procurement
portal in house.
Ferro Scrap Nigam ltd. (FSNL)
FSNL is a wholly ltd. owned subsidiary OF MSTC Ltd. with a paid up capital
of 200 lakh. The company undertakes the recovery and processing of scrap from
slag and refuse dumps in the nine steel plants at Rourkela, Burnpur, Bhilai,

19

Bokaro, Visakhapatnam, Durgapur, Dolvi, Duburi and Raigarh. The company is

also providing steel mill services such as scarfing of slabs, handling of BOF slag,
etc.

Hindustan Steelworks Construction Ltd.(HSCL)

HSCL was incorporated in June 1964 with the primary objective of creating in the
public sector an organisation capable of undertaking complete construction of modern
integrated steel plants. The company has also specialized in carrying out capital repairs and
rebuilding work including hot repairs of coke ovens and blast furnaces and other allied areas
of integrated steel plants.

MECON LTD.
MECON is one of the leading multi-disciplinary design, engineering ,consultancy
and contracting organization in the field of iron and steel, chemicals, refineries and
petrochemicals power, roads and highways ,railways, water management ports and harbours
gas and oil, pipelines non ferrous mining with extensive overseas experience. MECON has
collaboration agreements with leading firms from the USA, Germany, France, Italy, Russia
etc in various fields.

Private sector:
The private sector of the steel industry is currently playing an important and dominant
role in production and growth of steel industry in the country. not only play an important role
in production of primary and secondary steel, but also contribute substantial value addition in
terms of quality, innovation and cost effective.

Tata Steel Ltd.

Tata steel has an integrated steel plant, with an annual crude steel making capacity of 5
million tonnes located at Jamshedpur, Jharkhand. The company has planned to take the
capacity to 10 million tonnes by the fiscal year 2012.tata steels green field project in Orissa
and Chhattisgarh are progressing on schedule with placement of equipment order for Kalinga
Nagar project, Orissa. Jharkhand project is awaiting announcement of relief and
rehabilitation policy of the state Govt.

Essar steel Ltd.

20

Essar steel holdings ltd. (ESHL) is a global producer of steel with a footprint
covering India, Canada, USA, the middle east and Asia. The Essar steel complex at Hazira in
Gujarat ,India, houses the worlds largest gas based single sponge iron plant with a capacity
of 4.6 MTPA.

Jindal Steel &Power Ltd.(JSPL)

Jindal steel & power limited is one of the fast growing steel units in the country. The
Raigarh plant of JSPL has a present capacity of 1.37 million tonne per annum sponge iron
plant, 2.40 MTPA steel melting shop, 1.0 MTPA plant mill,2.30 sinter plant ,0.8 MTPA coke
oven and a 330 Megawatt captive power plant.

Ispat Industries Ltd. (IIL)

IIL has set up one of the largest integrated steel plant in the private in India at Dolvi in
Raigad Dist, Maharashtra with a capacity to manufacture 3 Million Tonnes per Annum of hot
rolled steel coils. This plant is using converter-cum-electric arc furnace route for producing
steel. In this project, IIL have uniquely combined the usage of hot metal and sponge iron the
electric arc furnace for production of liquid steel for the first time in India.
Factors holding back the Indian Steel Industry:

Energy supply.

Problems procuring raw materials inputs.

Inefficient transport system.

Growth of Steel Industry

The growth in a chronological order is depicted below:

S No

Year

Growth

1830

Osier Marshall heather constructed the first

manufacturing plant at port-motor in Madras presidency.

1874

James Erskin founded the Bengal frame works.

1899

Jamshediji TATA initiated the scheme for an integrated

steel plant
21

1906

Formation of TISCO

1911

TISCO started production

1918

TISCO was founded

1940-1950

Formation of Mysore iron and steel initiated at

Bhadravathi in Karnataka

1951-1956

First five-year plan - The Hindustan Steel Limited (HSL)

was born in the year 1954 with decision of setting up
three plants each with 1 million tones ingot steel per year
at Rourkela, Bhilai, Durgapur. TISCO started its
expansion programme.

1956-1961

Second five-year plan - A bold decision was taken up to

increase the ingot steel output in India to 6 million tones
per year and its production at Rourkela, Bhilai and
Durgapur Steel Plant started.

1961-1966

Third five-year plan During the plan the three steel

plants under HSL, TISCO & TISCO were expanded*

1964

Bokaro Steel Plant came into existence

1966-69

Recession period Till the expansion programmes were

actively existed during this period

1969-74

Fourth five-year plan Salem Steel Plant started.

Licenses were given for setting up of many mini steel
plants and re-rolling mills government of India. Plants in
south are each in Visakhapatnam and Karnataka. SAIL
was formed during this period on 24th January 1973.

1974-79

Fifth five-year plan The idea of setting up the fifth

integrated steel plant, the first re-based plant at
Visakhapatnam took a definite shape. At the end of the
fifth five-year plan the total installed capacity from six
integrated plants was up to 10.6 million tons.

1979-1980

Annual plan. The Erstwhile soviet union agreed to help

in setting up the Visakhapatnam Steel Plant.

1980-1985

Sixth five-year plan Work on Visakhapatnam Steel

Plant started with a big bang and top priority was
accorded to start the plant. Schemes for modernization
of Bhilai Steel Plant, Rourkela steel plant, Durgapur steel
plant and TISCO were initiated. Capacity at the end of
sixth five-year plan from six integrated plants stood
11.50 million tonnes.
22

1985-91

Seventh five-year plan Expansion works at Bhilai and

Bokaro steel plant completed.
Progress of
Visakhapatnam Steel Plant picked up and the
nationalized concept has been introduced to commission
the plant with 30 MT liquid steel capacities by 1990.

1992-1997

Eight five-year plans The Visakhapatnam Steel Plant

was commissioned in 1992. The cost of plant has
become around 8755 cores. Visakhapatnam Steel Plant
started the production and modernization of other steel
plants is also duly engaged.

1997-2002

Ninth five-year plant Restructuring of Visakhapatnam

Steel Plant and other public sector undertakings.

Steel Plants with Foreign Collaborations

S No

Plant

Collaboration Capacity of Finished

Steel Products

Rourkela Steel Plant

West Germany

Bhilai Steel Plant

Erstwhile USSR

Durgapur Steel Plant

Britan

Bokaro Steel Plant

Erst USSR

Annual Production at Steel Plants

S
No

Plant

Collaboration Capacity
of
Finished
Steel Annual Production
Products

Rourkela Steel Plant

West Germany

7,20,000 tonnes

Bhilai Steel Plant

USSR

7,70,000 tonnes

Durgapur Steel Plant

Britan

8,00,000 tonnes

Original to Expand

23

ORIGINAL

EXPANDED

MT/Year

MT/Year

Rourkela Steel Plant

1.0

1.8

Bhilai Steel Plant

1.1

2.5

Durgapur Steel Plant

1.0

1.6

TISCO

1.0

2.0

S.N
o

PLANT

24

25

WORK STOPPAGES FOR THE YEAR 2010-11

Sl.N
o
01

02

03

Date

Details of Major IR Event

27.05.1 WORK STOPPAGE BY CONTRACT WORKERS IN SMS

0
Shri D Bhuloka, an unskilled contract worker of M/s Sri Kiran
Krishna Constructions, engaged in Structural Repair Works for
buildings and technological structures including roof sheeting, fell
down from 38 mtr. Level to 8.5 mtr. Level in SMS Converter-I at
about 12.30 pm on 26.05.2010. He was immediately rushed to
OHSRC, where he was declared brought dead. The workmen led by
different unions brought back the body to SMS Converter area and
kept it there. In the wake of the above fatal accident, the workers
stopped production in SMS demanding permanent employment to
the son of deceased worker. To avert any undesirable happenings,
preventive steps were initiated including discussions with the
General Secretary and President of Unions and the leaders of
other Contract Labour Unions by DGM(P)-CER, and persuaded
them not to precipitate the issue and to extend their cooperation
in the interest of the Plant. ACP(South) was also requested for
deployment of additional police force at Converter area to control
the irate mob situation and to restore normalcy.
Discussions were continued in the meeting arranged at
Convertor Control Room by GM(Steel) wherein Sr. Executives of
SMS and St.ED, DGM(P)-I&M, AGM(P)/SMS, Manager(Per)-MM,
Officials of CER were present. After protracted discussions with
the union representatives, It was explained to the unions that the
family members of the deceased employee would be getting
benefits like Rs.5 lakhs insurance, ESI monthly benefit Rs.3,350/and pension under PF, Rs.5000/- towards funeral expenses besides
employment under the same contracting agency. At around 8.10
pm the body was allowed to be sent for post-mortem and later, the
workers resumed work. Tense situation prevailed and Police were
present throughout and maintained Law and Order.
20.07.1
WORK STOPPAGE BY EMPLOYEES OF BATTERY-IV ON
0
19.07.2010
On 19.7.2010 at around 10.00 AM, about
20 union
representatives of Visakha Steel Workers Union (Progressive Front)
and INTUC, led to stop the work at oven top of Battery-4,
demanding safe working conditions alleging leakage of gas and
high temperature. After initial discussions by DGM(O)-CO&CCP,
DGM(P)-I&M along with Personnel Executives of CO&CCP, GM(W)
designate, GM(CO&RMHP), DGM (CRG), DGM(P)-I/cPP later
participated in the discussions and assured that improvements will
be brought about on safety standards etc. The union members
were advised restraint and they were told that their request to
post additional contract workers will be also taken into view. The
issue has been resolved late in the evening on the assurance by
the representatives of management to examine the request of the
union to give additional contract labour in each shift.
24.07.1 WORK STOPPAGE AT CAST HOUSE IN BF BY PROGRESSIVE
0
FRONT ON INCENTIVE ISSUE
Today, the representatives of Progressive Front staged a dharna
initially in front of BF HODs office and later at Cast House
demanding payment of incentive to BF employees on the basis of
importance to the Core Department. The tappings were stopped

26

04

from 12.15 pm onwards, in BF-II. The union representatives were

told that they should desist such practices while the issue was
being discussed at various levels.
The workers led by the Progressive Front union demanded that
the revised incentive should be made effective from June, 2010
and that Management should give a commitment. GM(P&IR),
GM(Oprn) and DGM(BF)I/c held discussions
with the union
representatives at Furnace-II and they were advised to resume the
work keeping in view of Plants position as further discussions will
continue on incentive issue. The union was told that a meeting is
being scheduled for 26.07.2010 at 12.00 noon in the office of
GM(P&IR) to discuss further. The union members agreed to resume
the duties stating that the issue should be settled on 26.07.2010.
DGM(P)-I/c PP, DGM(P)-I&M, Personnel Executives of BF and CER
were also present. The employees resumed duties at around 4.30
pm.
12.08.1 WORK STOPPAGE BY OCR/ RMHP EMPLOYEES DEMANDING
0
SUBSTITUTE MAN POWER
On 11.08.2010 in `C shift 35 Non executive employees of Brigade
-2, OCR Section of RMHP deptt. did not report to work demanding
for posting of one employees in place of Shri R.Bhima Prasad,
E.No. 105870, Foreman (S)- (O) , who has been recently
transferred to T &DC deptt,. on 04.08.2010.

07

08

GM (CO &RMHP), Sr. Executives of RMHP, DGM (P)-I& M & Sr.

Manager (P)-RMHP visited the site and discussed with the
employees. After verbal assurance given by Management to post
one Junior Trainee from the `C shift of 13.08.2010 onwards in
place of transferred worker, work was resumed at about 1.00 am
on 12.08.2010.
16.09.1 WORK STOPPAGE BY CONTRACT WORKERS IN CO&CCP
0
71 workers of M/s Multi Tech Constructions and 13 workers of M/s
Surya Tej Engg. Works engaged in Battery-4 operation works
have struck work since 13.09.2010 demanding payment of
Special Miscellaneous Allowance (SMA). Out of these, 67 workers
were earlier getting SMA while working in Projects Division
through a special approval. However, after they were engaged in
the regular maintenance under CO&CCP-Works, a proposal for
payment of SMA to these workers has been initiated. It is
understood that they are also stopping the refractory and
mechanical works being carried by other contractors under
Capital Repair Dept. HoD of CO&CCP along with DGM(O)/CO and
Zonal Personnel advised the workers to resume the work
immediately. The situation is being monitored.
05.10.1 CRANE ACCIDENT AT CCD PLAT FORM- EMPLOYEES
0
AGITATED ALLEGING UNSAFE WORKING CONDITION
On 04.10.2010 at 5.15 pm. Tundish no. 99, which was being
shifted to Tundish Car 1 at CCM-3 by FH Crane No.3, had fallen on
the Tundish Car. This has sparked wide spread protests by the
employees at CCD Platform. The employees refused to attend to
the CCMs citing unsafe working conditions from around 5.30 pm
onwards. They demanded immediate action on the person who is
responsible for the accident and improvement in safe working
conditions.
DGM (SMS)-I/c held a meeting with the
representatives of the Recognised Union, INTUC and a group of
employees in the 1EP of Machine-3.
The employees raised
issues relating to Maintenance of all cranes, other machinery,

27

09

10

07.10.1
0

08.11.1
0

1)
2)
3)

11

poor welfare measures etc.

On assurance by DGM (SMS)-I/c to constitute a committee to
study in to their grievances and issues raised by them, the
employees dispersed at around 10.00 pm. DGM (P)-I/c PP, DGM
(P)-SCM, AGM (P)-SMS, DGM (O)-CCD, DGM (M)-I/c SMS and Sr.
Executives of SMS also present in the meeting.
DISRUPTIION OF ACTIVITIES AT RMHP AREA ON NON
PAYMENT OF DUES TO THE WORKERS
It is reported that on 06.10.2010 the MD of M/s FRIL along with his
workmen created a scene at the office of GM (Projects), RMHP and
demanded release of due amounts since the works were llocated
to M/s Sunil Hi-Tech Engg Ltd., Project Personnel and executives of
Prohjects Department, persuaded them to maintain restrain. The
crowd dispersed at around 5.30 pm. This morning also once again
the workers resorted to agitation steps and the work resumed at
12.00 non. Police and CISF were present to avert any eventuality.
CONTRACT WORKERS STRUCK WORK IN RMHP
All the contract workers of RMHP Department have struck work
from 06:00 a.m. onwards today demanding for settlement of
pending issues as submitted to HOD-RMHP on 23-10-2010.
Initially, GM(CP&C) held a meeting with the DGM (RMHP)I/c in the
office of HoD wherein GM(P&IR), DGM(P)-PP I/c, DGM(P)-I&M, ZPE
of RMHP and other senior executives were present.
Subsequently, HOD (RMHP) and representatives of Personnel and
RMHP held meeting with the CITU union on the issues raised by
them.
After lengthy discussions, the following points were decided to be
looked into:
To take action for processing of temporary passes of some
Contract
Workers of RMHP as permanent passes as per the
guidelines.
To arrange temporary enclosures with sheets for use by the
female contract workers.
To initiate proposal to constitute a committee to study other
demands like dust allowance, positions as per their nature of work
and other welfare amenities after studying the position throughout
the Plant.

Finally, the union has requested the management to complete the

exercise
of
constituting
the
Committee,
decisions
on
implementation of their request etc., within one and half months
time. Management advised the union that since their issues are
being positively taken up, the union should maintain restraint in
view of the critical condition of the Plant. The work was resumed at
around 1:00 P.M. today. Situation is being monitored by the
Personnel Department.
13.11.1 DEMONSTRATION BY CONTRACT LABOUR UNIONS AT BC
0
GATE
Contract labour unions affiliated to CITU, AITUC, HMS, INTUC
&TNTUC staged a demonstration near B.C Gate from 8.00 am to
9.00 am today demanding to continue the contract workers even
though the contractor changes. The members of unions raised
slogans in support of their demand and addressed the gathering
stating that they approached Management on the above issue and
expect amicable solution. Due to persuasive efforts made with the
representatives of unions in the meeting held on 12.11.2010,
there was no obstruction to the traffic movement. Police and CISF
were present to oversee the Law and Order situation.

28

12

15.12.1
0

Work stoppage in SMS

Contract labour led by Contract Labour Union (CITU) engaged in
the following jobs, struck work demanding immediate settlement
of PF issue of M/s Mukundhara Engineers & Contractors in SMS.
a) Repair of Technological structures in Convertor Shop
b) Technological upkeep of converter shop floors and
equipments
c) Repair and revisioning of various mechanical
equipments of convertor in Convertor Shop
d) Shell repair works in various sections of Converter
Shop
Discussions were held in the office of HoD, yet stalemate continues
and situation is being monitored closely.

13

14

16.12.1
0

21.01.1
1

CONTRACT LABOUR RESUME WORK AT SMS

Contract labour resumed to their duties in B shift today following
a meeting held in the office of DGM (P)-I/c PP, along with Sr
Personnel officials, HOD of SMS and with the senior leaders of
CITU. The union was advised to restore normalcy immediately in
the interest of the Plant and in their own interest. Contractor of
M/s Mukundhara Engineers & Contractors attended the meeting
and explained that he had not defaulted in PF remittances and
briefed that the problem occurred due to certain discrepancies in
reconciliation of amounts transferred from Bank. Further the
Contractor has given a written assurance that he would follow
up with PF officials for early payment of claims made by his
contract workers. With this union members were satisfied and
normalcy was restored by 2 pm.
CONTRACT LABOUR STRUCK WORK IN BF ZONE
Today, at around 10.30 AM, a group of 25 workers of M/s JS
Engineering engaged in Track Maintenance work in BF Zone struck
work for not issuing muster card to one of the workers.
AGM(Traffic) and Zonal Personnel Executives discussed with the
TNTUC representatives for resumption of work. The Contractor,
later explained that these workers were to carry on the work on
piece rate but later demanded for time rate engagement. The
contractor was advised to resolve the issue amicably as the work
was suffering. It is learnt that the workers are likely to resume
work by tomorrow.
02. CONTRACT LABOUR RESUMED TRACK MAINTENANCE
WORK IN BF ZONE
The contract workers of M/s JS Engineering engaged in Track
Maintenance work in BF Zone who struck work in the morning of
21.01.2011 for not issuing muster card to one of the workers,
resumed their duties after discussion by the contractor with the
representatives of TNTUC Contract Labour Union.

29

CHAPTER III
COMPANY PROFILE

COMPANY PROFILE
30

Introduction:
Visakhapatnam steel plant (VSP), the first coast based steel plant of India is
located,16 km south west of city of destiny i.e. Visakhapatnam. Bestowed with modern
technologies, VSP has an installed capacity of 3 million tons per annum of liquid steel and
2.656 Million Tones of saleable steel.VSP products meet exacting international quality
standards such as JIS,DIN,BIS,BS etc.
Visakhapatnam steel plant has become the first integrated steel plant In the country to
be certified to all the three international standards for quality (ISO-9001) for environment
management (ISO-14001) & for Occupational health & safety(OHSAS-18001).
Visakhapatnam exports quality pig iron & steel products to Srilanka, Myanmar,
Nepal, Middle east, USA, China, and South east Asia. Having total manpower of about
16,600. VSP has envisaged a labour productivity of 265 tons per man year of liquid steel.

Background
With a view to give impetus to industrial growth and to meet the aspirations of
the people from Andhra Pradesh, Government of India decided to establish integrated steel
plant in public sector at Visakhapatnam. The announcement to this effect was made in the
parliament on 17th april1970 by the then prime minister of India late Smt. Indira Gandhi.
The foundation stone for the plant was laid by Smt. Indira Gandhi on 20.01.1971.
An agreement was signed between governments of India and the erstwhile
USSR on June 12th, 1979 for setting up of an integrated steel plant to produce structural &
long products on the basis of detailed project report prepared by M/s M.N. Dastur &
Company.
The construction of the plant was started on 1 st February 1982, Government of
India on 18th February 1982 formed a new company called Rashtriya Ispat Nigam ltd. (RINL)
and transferred the responsibility of constructing, commissioning & operating the plant at
Visakhapatnam from steel authority of India Ltd. to RINL.

The plant was dedicated to the nation by the then prime minister of India late Sri
P.V. Narasimha Rao on 1st August 1992.

31

Technology: state-of-the-art.

I.

meter

tall

coke

oven

batteries

32

with

coke

dry

quenching.

II.

Bell-less

top

charging

system

III.

100% slag granulation at the BF cast house.

IV.

Suppressed combustion LD gas recovery system.

V.
VI.

100% continuous casting of liquid steel

.

33

in

blast

furnace.

VII.

VIII.
IX.

Temporal

and

stelmor

cooling

in

LMMM

&

WRM

respectively.

Extensive waste heat recovery systems.

Comprehensive pollution control measures.

Water supply:
An operational water requirement of 36 Mgd is being met from the yeluru water
supply scheme.

Power supply:
Operational power requirement of 180 to 200 MW is being met. Through captive
power plant. The capacity of the power plant is 286.5 MW. Visakhapatnam steel plant is
supplying 60 MW power to Andhra Pradesh state electricity board.

Major Resource of Raw Material:

Raw material

Source

Iron ore lumps & fines

Bailadilla, MP

BF lime stone

34Jaggayyapeta, AP

SMS lime stone

Middle East

BF dolomite

Madharam, AP

SMS dolomite

Madharam , AP

Manganese

Chipurupalli, AP

Boiler coal

Talcher, Orissa

Coking coal

Australia

Medium coking coal(MCC)

Gidi/ swang/ rajarappa/ kargali.

Major units:

Department

Annual capacity

Units(3.0 mt stage)

(000 T)
Coke ovens

2,261

Batteries of each 67 ovens &7 mtrs height

Sinter plant

5,256

2 sinter machines of 312 sq. mtrs grate area each

Blast furnace

3,400

2 furnaces of 3200cu.mtr.volume each

Steel melt shop

3,000

3 ld converters each of 133cu.mtr.volume and six

4 strand bloom casters

Main Products of VSP

Steel products

By-products

Blooms

Nut coke

Granulated slag

Billets

Coke dust

Lime fines

Channels, angles

Coal tar

Ammonium sulphate

Beams

Anthracite oil

Squares

Hp naphthalene
35

Flats

Benzene

Rounds

Toluene

Re-bars

Zylene

Wire rods

Wash oil

Vision:

To be a continuously growing world class company we shall

Harness our growth potential and sustain profitable growth.

Deliver high quality and cost competitive products and be the first choice of
customers.

Create an inspiring work environment to unleash the creative energy of people.

Achieve excellence in enterprise management.

Be respected corporate citizen, ensure clean and green environment and develop
vibrant communities around us.

Mission:
To attain 16 million ton liquid steel capacity through technological up-gradation,
operational efficiency and expansion; augmentation of assured supply of raw
materials; to produce steel at international standards of cost and quality; and to meet
the aspirations of the stakeholders.

Objectives:

36

Expand plant capacity to 6.3Mt by 2011-12 with the mission to expand further in
subsequent phases as per Corporate Plan

Revamping existing Blast Furnaces to make them energy efficient to contemporary

levels and in the process increase their capacity by 1 Mt, thus total hot metal capacity
to 7.5 Mt

Be amongst top five lowest cost liquid steel producers in the world

Achieve higher levels of customer satisfaction

Vibrant work culture in the organization

Be proactive in conserving environment, maintaining high levels of safety &

addressing social concerns.

Core Values

Commitment

Customer Satisfaction

Continuous Improvement

Concern for Environment

Creativity & Innovation

Visakhapatnam Steel Plant takes all necessary actions for the fulfillment of regulatory
requirements. It has dedicated departments for this purpose. Energy conservation,
environmental preservation, safety in work place, and occupational health gets highest
priority in the company. Some of the policies in this regard are reproduced below:

Quality Policy
Visakhapatnam Steel Plant Employees are committed to meet the needs and expectations
of our customers and other interested parties. To accomplish this, they will
Supply quality goods and services to customers delight.
Achieve quality of the products by following systematic approach through
planning, documented procedure and timely review of quality objectives.
Continuously improve the quality of37all materials, processes and products.

 Maintain an enabling environment, which encourages teamwork and active

involvement of all employees with their involvement.

Environment Policy
Visakhapatnam Steel Plant carrying out its operations without harming to the
environment. To accomplish this, they will

Document, implement, maintain and continuously review the environmental

management system.

Comply with all the relevant environmental legislations, regulations and other
requirements.

Ensure continual improvement in the environmental performance and prevention

of pollution by minimising the emissions and discharges.

Maintain a high level of environmental consciousness amongst employees.

Review the environmental objectives and targets on a continuous basis.

Energy Policy
Visakhapatnam Steel Plant is committed to optimally utilize various forms of energy in a
cost-effective manner to effect conservation of energy resources. To accomplish this, they
will

Monitor closely and control the consumption of various forms of energy through
an effective Energy Management System.

Adopt appropriate energy conservation technologies

Maximise the use of cheaper and easily available forms of energy.

OSHAS Policy
Visakhapatnam Steel Plant is committed to occupational health and safety of employees
and contract workers. To accomplish this, the will
38

Document, implement, maintain and periodically review the occupational health

and safety management system including the policy

Comply with all the relevant occupational health and safety legislations,
regulations and other requirements.

Ensure continual improvement in the environmental performance and prevention

of pollution by minimising the emissions and discharges.

Maintain a high level of environmental consciousness amongst employees.

Review the environmental objectives and targets on a continuous basis.

Human Resource Policy

Visakhapatnam Steel Plant believes that their employees are the most important
resources. To realise the full potential of employees, the company is committed to

Provide work environment that makes the employees committed and motivated
for maximizing productivity.

Establish systems for maintaining transparency, fairness and equality in dealing

with employees.

Empower

employees

for

enhancing

commitment,

responsibility

and

accountability.

Encourage teamwork, creativity, innovativeness and high achievement orientation.

Provide growth and opportunities for developing skill and knowledge

Ensure functioning of effective communication channels with employees.

Training & Development

RINL believes that the employees are its assets and strives to realize their potential in
full for mutual advantage. The human resource development involves development of the
employee as a whole.
The needs of induction training, skill upgradation, unit training, computer related
training, refresher training, foreign training, faculty
39 training etc. are attended by the Training

& Development Centre while management development and attitudinal development are
taken care at the Centre for HRD.
Training in certain specialized areas like safety, fire prevention, occupational health
etc. is also taken up by departments specializing in respective fields.
RINL also provides learning opportunities to individuals by nominating them to
external training programmes for enhancing their knowledge. Employees are sponsored for
external training programmes including seminars and competitions organized by various
professional bodies and institutes like CII, ICWAI, NPC, BVQI, INSSAN, AIMA, NIPM,
LPAI, ICSI, SCOPE, VSC, QCFI, RDCIS (SAIL), ICAI, ESCI, ASCI, CBI Academy, IBM,
WIPS, Association for Advancement of Police & Security Services, IIMS etc.
Employees are sent to other steel plants on short duration tours to find solutions to the
various issues the company. Employees are also sent to suppliers manufacturing units /
training institutes to get specific training in identified areas.

Marketing Network
The company markets its products through headquarter marketing office and a
network of regional offices, branch offices and stockyards located all over the country. It also
takes the help of consignment agents and consignment sales agents for the marketing of its
products. The exports are carried out by the export wing of marketing division with the help
of different agencies. The company is recognized as Star Trading House by the Director
General of Foreign Trade, Ministry of commerce, Government of India.
The end users of the steel products manufactured at the plant include amongst others,
construction industry, automobile industry, engineering industry, re-rolling industry, forging
industry, cable industry, wire drawing industry, fastener industry, electrode manufacturers and
railways. The company is ideally located to serve the southern Indian market.
40

Pollution Control and Environmental Protection

Generally, integrated steel plant is seen as a major contributor to environmental
pollution as it discharges volume of waste products. Elaborate measures have been adopted
to combat air and water pollution in Visakhapatnam Steel Plant. In order to be echo friendly,
Visakhapatnam Steel Plant has planted more than 3 million trees over an area of 35 Sq. Kms
and incorporated various technologies at a cost of
Rs. 460 Crs towards pollution control measures.

Human Resource Management

Human resource initiatives at Visakhapatnam Steel Plant are closely linked to
the corporate strategy of the organisation. Visakhapatnam Steel Plant has exemplary
industrial relations where the entire workforce works as a well knit team for the progress of
the company. The productive environment prevailing in the company fosters an atmosphere
of growth, both for the employees and for the company. Visakhapatnam Steel Plant has
introduced multi skilling concept since inception and the employees are trained as per this
concept. Visakhapatnam Steel Plant has adopted a system of overlapping shifts, the first of
its kind, in the industry. This system ensures smooth change over of the shifts and
uninterrupted pace of operation of the plant during the shift change over. Another unique
feature followed at Visakhapatnam Steel Plant is the uniform working hours for the
ministerial employees.

Training and Human Resource Development

Training and Human Resource Development are given due emphasis at RINL. Each
year, a minimum of one third of the employees undergo various training sessions either at
Training & Development Centre or at Centre for HRD for sharpening their skills on the
technical and management related issues. Training is also given in the area of safety, fire
prevention, occupational health besides on the job at the shop floor.

Welfare Amenities
The welfare measures provided for the employees of the company are the
best in the industry. A modern Township with all amenities has been developed with 8032
quarters to house the plant employees and other Government Agencies in 11 sectors. The
township is having best facilities in terms of drinking water supply, drainage system, roads,
community centres, crche, parks, schools, shopping complexes, medical facilities,
recreational facilities, scholarships etc. to cater to the needs of the employees and their
dependent families. The company also provides welfare facilities much beyond the statutory
requirements by way of introduction of a unique Superannuation Benefit Fund and a unique
Family Benefit Scheme.
41

ACHIEVEMENTS AND AWARDS:

Only integrated steel plant to receive ISO 9001-2000 certification for
Quality Management in India on January 2001.
Received ISO 14002 certificate for Environment Management on May
2001.
Only integrated steel plant in India to receive OHSAS 18001
Certification for Occupational Health and Safety Management System on
January 2002
Indira Priyadarshini Vriksha Mitra award: 1992-93
Nehru memorial National award for pollution control: 1992-93 & 199394
EEPC export excellence award: 1994-95
CII (South region) energy conservation award: 1994-95
Golden peacock I prize National Quality Award-96
Steel ministers trophy for Best Safety performance in 1996,1997 and
1998
Gold star award for excellent productivity
Udyog excellence gold medal award for excellence in steel industry
ISPAT Suraksha Puraskar (I prize) for longest accident free period, 19911994

42

 SAIL chairmans silver plaque for NO FATAL ACCIDENT for the year
1999
Best labor Management Award from the Govt. of Andhra Pradesh.
SCOPE Awards for best Turn around for 2001
First prize for Energy conservation in 2002 & 2003
Best Enterprise Award from SCOPE, WIPS in 2001-2002
Best HRD practices Award by ISTD for the year 2002-03
Prestigious Prime Ministers Trophy for Vizag Steel for the year 20032004
World Quality Commitment International Star Award for the year 2004
CACCI Business Achievement Award for the year 2004
Leadership & Excellence Award in SHE (Safety, Health & Environment)
for the
Year 2004
National Award for Excellence in Water Management by CII for the year
2005
Energy Conservation Award by AP Productivity Council for the year
2005
Business Achievement Award for Excellence for the year 2005
Awarded Mini Ratna Status in the year 2006
Organizational Excellence Award by INSSAN for the year 2006
43

 National Energy Conservation Award First Prize for the year 2006
Strong Commitment - CII HR Excellence Award 2006 for the year 2006
Commendation prize for strong commitment to Excellence CII Exim
Bank Award
For Business Excellence 2006 for the year 2006
Nava Ratana Status conferred to RINL on 16 th November , `2010
VSP received Indira Gandhi Raj bhasha shield in New Delhi on
14th September 2010.
VSP bagged award for Best Management practices instituted by
government of Andhra Pradesh the award was received on 1 st may
2010.
VSP was awarded first prize in the contest INSSAN Award for
organizational Excellence in suggestion Scheme in steel units
category.
VSP was selected for the award of Certificate Of Merit of
Global Human Resources Development Awards 2010 by
International Federation of Training and Development Organizations
( IFTDO ) London.
Teams from VSP bagged 20 Gold , 7 Silver and 2 Bronze Medals at the
10th chapter Convention of Quality Circle
( CCQC ) Forum of India held at Visakhapatnam.All the seven Quality
Circles ( QC ) teams and Four 5S teams of VSP bagged Gold
Medals at the International Convention on Quality Concept Circles (
ICQCC ) 2010 held at Hyderabad in October 2010
44

 VSP was awarded the Certificate for Excellent Water Efficient Unit
during a National Competition for Excellence in water Management
2010 organized at Hyderabad by CII.
VSP bagged Town Official Language Implementation Committee
Awards , Visakhapatnam , for its exemplary performance in
implementation of Official Language 2010.
The First Steel Minister s trophy for the year 2006 - 2007 was
presented by the Union Minister for Steel to RINL VSP on 10th
May 2010.
Coke Oven Battery was dedicated to the Nation on 10th May 2010 by
Union Minister for steel.
RINL VSP won the Second Prize amongst the integrated Steel Plant
of the National Sustainability Award of the Ferrous Division of
Indian Institute Of Metals on 14th November 2010 in Bangalore.

STATISTICAL INFORMATION
1. PRODUCTION PERFORMANCE (000 TONE)
YEAR
HOT LIQUID
SALEABLE
LOBOUR
METAL STEEL
STEEL
PRODUCTIVITY
45

2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011

3,485
3,941
4,055
3,920
4,153
4,046
3,913
3546
3900
3830

3,083
3356
3508
3560
3603
3606
3322
3145
3399
3424

2757
3056
3169
3173
3237
3290
3074
2701
3167
3077

228
253
262
265
282
413
389
359
382
358

2. COMMERCIAL PERFORMANCE (RS CRORES)

YEAR
SALES
DOMESTIC
TURNOVER
2001-2002
4081
3710
2002-2003
5059
4433
2003-2004
6174
5406
2004-2005
8181
7933
2005-2006
8469
8026
2006-2007
9131
8487
2007-2008
10433
9878
2008-2009
10411
10333
2009-2010
10433
10284

3. FINANCIAL PERFORMANCE
YEAR
GROSS MARGIN
2001-2002
690
2002-2003
1049
2003-2004
2073
2004-2005
3271
46

CASH PROFIT
400
915
2024
3260

EXPORTS
371
626
768
248
443
424
555
78
351

NET PROFIT
(-)75
521
1547
2008

2005-2006
2006-2007
2007-2008
2008-2009
2009-2010

2383
2633
3515
2355
1603

2355
2584
3483
2267
1525

1251
1363
1943
1336
797

RINLs GROWTH STRATEGY

The Expansion Project for increase in capacity from 3.6 Mtpa to 6.3 Mtpa Liquid
Steel is under implementation and major works i.e. repairs, revamps and modernisation
relating to existing Blast Furnace, Steel Melt Shop, Sinter Plant and Mills are planned to be
carried out as per the schedules drawn up from now till 2011. These efforts towards Capacity
Augmentation would help the Company consolidate its Leadership in Bars and Structurals
Market and help the Country in bridging the Demand Supply gap. RINL is continuing its
efforts to have Raw material security through the Joint Venture route and also by establishing
a Special Purpose Vehicle for overseas coal mines as also suggestions for coming together
with a Company having raw materials like iron ore. He asserted that, the RINL collective
is the key to Companys success and the Company has evolved suitable HRD initiatives for
multi-skilled training and constant learning. Many Awards and Merit Certificates were
earned by the Company and the conferring of Prime Ministers Trophy for the second time
for a Best Integrated Steel Plant is a testimony to the Companys commitment to excellence
in Steel Making. While the Company earned Profits consecutively for the sixth year since
2002-03 onwards, it also continued its role as a responsible Corporate Citizen by focusing on
community welfare schemes and render an helping hand to the needy.
The Company,
having evolved a Corporate Social Responsibility Policy, implemented various schemes and
spent an amount of Rs.13.72 Crores, a ten fold increase over previous year. 4Company has
embarked on its Expansion programme for doubling its capacity from 3 MT to 6.3 MT with
an object of not only increasing the scale of operations but also meeting the Customers
requirements. Ordering for Plant & Equipment of major packages is already completed. He
exhorted that best efforts are being put in for acquiring the state of the art technology in its
expansion areas.
CMD further stated that linkages for raw materials security are being
explored. The Expansion funding will be from internal resources and debt He also stated
that the Corporate Plan 2020 for the Company has been finalised aiming to take the capacity
of the Plant ultimately upto 16 million tonnes by 2020.Shri Bhaskarudu, Independent
Director and the Chairman of the Audit Committee clarified the points raised by Shri P K
Mittal, Under Secretary representing the Shareholders of the Company. Shri P. Mohan Rao,
Dy. General Manager (CA) & Company Secretary read the Auditors Report. The
Shareholders adopted the Directors Report and the Audited Annual Accounts for the period
from 1.4.2007 to 31.3.2008. The Company earned a net profit of Rs.1942.74 Crores for the
year 2007-08. The Company is poised for improving its performance significantly, in the
current year (2008-09) as well.

47

CHAPTER-IV
THEORETICAL FRAME WORK

48

THEORETICAL FRAME WORK

Industrial Relations is concerned with the relationship between Management representing the
holders of capital and trade unions representing the holders of labour power regarding the
employment, unemployment, terms of employment and unemployment, conditions of
employment and unemployment and conditions of work. Thus Industrial Relations connote a
vast complex of relationships obtaining between management and employees, union and
management, union and employees and between employees themselves. Both parties to
industrial relations have a common interest in industry, but many a time, they are found to be
pulling in different directions which leads to industrial unrest. Therefore, it has become
necessary to secure the cooperation of both workers and management to achieve good
industrial relations.
Besides management and workers, state is another party associated with industrial relations.
The interference of government in industrial relations through legal and administrative
measures is quite common. Thus, the area of industrial relations has been extended relations
among the state, employer and employees.

Definition:
According to Encyclopedia Britannica,
The subject of industrial relations includes individual relations and joint
consultation between employers and workers at the place of work, collective relations
between employers and their organizations and trade unions and part played by the state in
regulating these relations.

According to Dale Yoder,

The term industrial relations refers to the relationship between management
and employees or among employees and their organization that arise out of employment.

TRADE UNIONISM
A Trade Union signifies an organization of workers engaged in securing certain economic
benefits for its members. However, this is not the true view of a trade union. In the modern
context, trade unions activities are not confined to mere securing the economic benefits.
The purview of its activities now includes even the political and welfare activities undertaken
by it for the benefit of its members.
A trade union may be defined as an organization of employees formed on a
continuous basis for the purpose of gaining diversified benefits. Trade union is a necessity
and by product of the Industrial Revolution. For good Industrial Relations, it must be
remembered that trade unions play a vital role in providing a proper work atmosphere and
congenial Industrial Relations scenario. With a view to self-protection and self-help, labour
49

has organized itself under Employee Associations and Unions. The conflict between capital
and labour in Europe and America resulted in the origin of the Trade Union Movement.

TRADE UNION MOVEMENT IN INDIA

Trade Unions, as understood today, however, originated in the first
quarter of the 20th century, although the groundwork was laid during the last quarter of the
19th century. In Mumbai, as early as in 1875, reformers under the leadership of Sorabji
Shapurji started a movement. They protested against the appalling conditions of the factory
workers and appealed for introduction of adequate legislation to prevent them. The credit for
laying the foundation of the organized Labor Movement in India is attributed to
Mr.N.M.Lokhande, a factory worker himself in 1884 in Mumbai. Actually a real organized
labour movement in India was started at the end of the First World War. Rising prices,
without a corresponding increase in wages despite the employers making huge profits, led to
a new awakening. Many Trade Unions were formed throughout India. To this was added the
influence of the Russian Revolution, the establishment of ILO (International Labour
Organization) and the All India Trade Union Congress. This speeded up the pace of the Trade
Union Movement. Following the Second World War, there was a spiraling of prices. The
workers once again became restive. This further indirectly strengthened the movement in
India.

TRADE UNION MOVEMENT IN VISAKHAPATNAM STEEL PLANT

Visakhapatnam Steel Plant has a unique history of Trade Union
Movement. Trade Union Movement in Visakhapatnam Steel Plant started in Visakhapatnam
during 1979 with registering of 1st Trade Union by name Visakha Steel Employees Union.
However some of the senior employees who joined from other steel plants had educated the
modalities of Trade Union Movement and thereby could achieve in establishing Trade Union
Movement in Visakhapatnam Steel Plant. During 1981, the main activities were Site
Leveling, Evacuation of villages etc., and whereby nearly 25 to 30 thousand workers worked
daily in the shape of Labour Contract, continuously around the clock. This has led to the
influence some of the petty Trade Unions to enter into the contract labour issues of
Visakhapatnam Steel Plant. Due to continuous activities around the clock, the scope to
implement the policies as laid down under different acts was very little. The trade unions,
which were established for the purpose of Visakhapatnam Steel Plant regular employees, did
not indulge in contract labour activities. Visakhapatnam Steel Plant being a new
organisation, initially it faced difficulties and confusion as executives at different levels
joined from different steel plants brought there their own culture and work
practices.Visakhapatnam Steel Plant Management did not show interest to discuss and
negotiate with the Trade Unions on any matter. This has also led to run regular confrontation
at work spots. In the absence of clear-cut policies in matters like welfare, wages, promotion,
allowances etc., the trade union representatives also faced immense difficulties.

50

After a year to this Visakhapatnam Steel Plant recruited a large percentage of displaced
persons, these new recruites challenged the leadership of unions stating that they can lead the
Trade Unions not only for the benefit of the displaced persons but also the welfare of the
other employees. And in this way they captured the unions which was then affiliated to
INTUC, they registered it as Visakha Steel Mazdoor Sangh, the 2 nd Union, by 1983 both
AITUC and CITU established their unions, which were influenced by the communist but in
the initial period these communist unions would not get the support of the employees. Later
on the unions that had originated in Visakhapatnam Steel Plant counts to 20 in
Visakhapatnam Steel Plant and 4 at Mines of Visakhapatnam Steel Plant. The names and the
year of registration are given below

ELECTIONS SCENARIO AT VISAKHAPATNAM STEEL PLANT

According to Code of Discipline in our State every Industry is obliged
to Recognise one Union as representative of employees. First union elections were
conducted during 1985, in which INTUC got the majority. In the second elections AITUC
won the election. However, in 1993 Visakha Steel Employees Congress an independent
union was elected as the employee representative. In due course, other unions like CITU
( Visakha Steel Workers Union) have also been elected as representatives. The details of the
year of elections, unions elected are also enclosed in Table.No.4.3 and Table.No.4 showing
the polling details of recent elections which was held at 21.06.2003.
In Visakhapatnam Steel Plant, Eight Elections have taken place including the recent
elections that tookplace on 21st June 2003, which was won by INTUC. Here union elections
were held for every 2 years, in which AITUC got recognisition for 3 times, CITU and INTUC
jointly sharing the second with 2 times. Central Employee Relations Department a division of
Personnel Department in Visakhapatnam Steel Plant in coordination with the State Labour
Department organises the election by making all arrangements like preparation of voters list,
printing of Ballot papers, stationary etc., they also look after for the security with the help of
local Police Force along with Central Industrial Security Force and suitable arrangements like
accommodation, transport and so on for the labour department officials and the election
coordinating staff who look after the organisation of election procedure.

LIST OF51
TRADE UNIONS

IN VISAKHAPATNAM STEEL PLANT

Sl.
No.

NAME OF THE UNION

AFFILIATION

REGN. No.

1.

VISAKHA STEEL EMPLOYEES UNION

NONE

D-482/80

2.

VISAKHA STEEL WORKERS UNION

AITUC

D-533/81

3.

STEEL PLANT EMPLOYEES UNION

CITU

D-597/82

4.

VISAKHA STEEL MAZDOOR SANGH

NONE

D-620/82

5.

VISAKHA STEEL EMPLOYEES CONGRESS

INTUC

D-1085/89

6.

VISAKHA UKKU SHRAMIKA SANGH

TNTUC

D-1113/90

7.

VISAKHAPATNAM STEEL STAFF & WORKERS AICTU

UNION

D-1159/91

8.

VISAKHA STEEL MINISTERIAL EMPLOYEES NONE

WELFARE ASSOCIATION

D-1160/91

9.

VISAKHA STEEL SUPERVISORY STAFF UNION

NONE

D-1241/92

10.

DEMOCRATIC STEEL EMPLOYEES UNION

HMS

D-1335/93

11.

RASHTRIYA ISPAT MAZDOOR SANGH

BMS

D-1343/93

12.

CONGRESS OF VISAKHA STEEL WORKERS

NONE

D-1367/93

13.

UNITED STEEL EMPLOYEES UNION

DITU

D-1397/93

14.

VIZAG
STEEL PLANT
EMPLOYEES UNION

AND NONE

D-1461/95

15.

NATIONAL TRADE UNION OF RE-UNITED NONE

STEEL EMPLOYEES COUNCIL (NTR-SEC)

D-1499/96

16.

STEEL TECHNICIANS ASSOCIATION

NONE

D-1857/2000

17.

STEEL PLANT EMPLOYEES ASSOCIATION

NONE

D-1862/2000

18.

TELUGUNADU STEEL EMPLOYEES COUNCIL

TNTUC

D-1912/2002

19.

ANDHRA NADU VISAKHA STEEL EMPLOYEES NONE

UNION
52

WORKERS

D-1955/2003

20.

REPUBLIC STEEL EMPLOYEES UNION

NONE

D/1979/04

LIST OF TRADE UNIONS AT MINES

OF VISAKHAPATNAM STEEL PLANT
SI.NO

NAME OF THE TRADE UNION

AFFILIAT
ION

REG.
NO.

NONE

D-851/81

AT JAGGAYYAPETA LIME STONE

MINES
1.

VSP MINES EMPLOYEES UNION

2.

VSP MINES STAFF & WORKERS INTUC

UNION
AT
MADHARAM
MINES

D-533/81

DOLOMITE

1.

VISAKHAPATNAM STEEL PLANT NONE

WORKERS UNION

E1003/91

2.

RASHTRIYA
ISPAT
EMPLOYEES UNION

E1631/95

MINES AITUC

LIST OF THE UNIONS ELECTED AT VSP

YEAR

NAME OF THE UNION

AFFILIATION
53

1985

VISAKHA STEEL PLANT EMPLOYEES INTUC

UNION

1988

VISAKHA STEEL WORKERS UNION

AITUC

1991

STEEL PLANT EMPLOYEES UNION

CITU

1993

VISAKHA
CONGRESS

1995

STEEL PLANT EMPLOYEES UNION

CITU

1998

VISAKHA STEEL WORKERS UNION

AITUC

2001

VISAKHA STEEL WORKERS UNION

AITUC

2003

VISAKHA
CONGRESS

STEEL

EMPLOYEES NONE

STEEL

EMPLOYEES INTUC

LIST OF CONTRACT TRADE UNIONS

Sl.No

Name of the Contract Labour Union

54

Affliliatio

Retistratio

n No
Year

&

STEEL PLANT CONTRACT LABOUR UNION

CITU

519/80

VISAKHA INDUSTRIAL CONTRACT KARMIKA SANGHAM

NONE

D-533/81

VISAKHA UKKU CONRACT KARMIKA SANGAM

NONE

D-686/82

VISAKHAPATNAM STEEL PROJECT CANTEEN WORKERS

AITUC
UNION

D-845/86

VISAKHA STEEL PROJECT CONTRACT WORKERS UNION

AITUC

D-878/86

VIZAG STEEL PLANT CONTRACT WORKERS UNION

TNTUC

D-1149/91

VISAKHA STEEL PROJECT CONTRACT WORKERS UNION

AITUC

D1154/91

RAJEEV SHRAMA SHAKTI (STEEL CONTRACT WORKERS

INTUC
UNION)

D-1257/92

STEEL PLANT CANTEEN EMPLOYEES UNION

CITU

D-1261/92

10

BHARATHA KARMIKA SANGAM

NONE

D-1330/93

11

VISAKHA
STEEL
PLANT
CLUB,
HORTICULTURE WORKERS UNION

AITUC

D-631/95

12

VISAKHA INDUSTRIAL EMPLOYEES & WORKERS UNION

NONE

D-1409/95

13

VISAKHA DIVISION INDUSTRIES CONTRACT KARMIKA

TNTUC
SANGHAM

D-1451/95

14

VIZAG STEEL PLANT WORKERS & EMPLOYEES UNION

NONE

D-1461/95

15

VISAKHAPATNAM STEEL CONTRACT LABOUR UNION

NONE

D-1640/97

16

VISAKHA UKKU CONTRACT LABOUR UNION

NONE

D-1664/97

17

VISAKHA STEEL CITY MOTOR WORKERS UNION

AITUC

D-1668/97

18

STEEL CITY CONTRACT LABOUR UNION

DITU

D1824/2000

19

REPUBLIC STEEL CONTRACT LABOUR UNION

NONE

D2042/2000

20

VISAKHA UKKU NIRVASITHA CONTRACT LABOUR UNION NONE

002/10

21

ANDHRA NADU VISAKHA STEEL CONTRACT LABOUR

NONE
UNION

005/2011

22

VIZAG STEEL MAZDOOR CONTRACT LABOUR UNION

C-004/2011

55

CANTEEN

&

HMS

DISCIPLINARY PROCEDURE
Discipline is a Code of Conduct in an Enterprise in which the members
of the enterprise conduct themselves within the standards of acceptable behaviour which
means that the stipulations of the code of conduct laid down by the enterprise are properly
understood and observed by one and all.
The state of Industrial Relations in a country/factory is also reflected in
the discipline and the morale of the labour force. Discipline is very essential for a healthy
industrial atmosphere and the achievement of organisational goals.
In any Organisation maintenance of discipline among personnel at all
levels is required to create the conducive work environment so as to facilitate increased
productivity and organisational effectiveness. So management of an organisation can adopt
two approaches for discipline maintenance:
Adopting preventive measures prevention is better than cure principle
is based on the assumption that employees perform better through rewards than punishments.
So the problems of indiscipline do not emerge.Curative measures that it taking disciplinary
actions against the persons involved in indiscipline. The Disciplinary Action should be taken
after going through specific process because the punishment may be held invalid if there is
any deviation from the procedure laid down. The procedure for taking disciplinary action is
defined by the Standing Orders formulated by the Organisation.
While taking an action, all the relevant facts leading to indiscipline must be
ascertained so that the need for disciplinary action is determined. The facts must be collected
as soon as possible to take the action promptly. The disciplinary procedure either Punitive or
Curative has to be invoked for preserving industrial peace as well as maintaining the
efficiency of the organization.

Disciplinary Procedure at Visakhapatnam Steel Plant:

When an act of misconduct is alleged against a workman for whom a
punishment as provided under Standing Orders of the Company. The workman shall be given
an opportunity to show cause before punishment is imposed.

Disciplinary Authority:
Any Executive/Officer to whom powers are delegated to take disciplinary
action against a workman shall be the disciplinary authority competent to initiate disciplinary
action and to impose punishment on a workman. The Disciplinary Authority shall frame
definite charges on the basis of the allegations against him. The charges together with a
statement of allegations on which they are based, shall be communicated in writing to the
56

workman who shall be required to submit a written statement of his defence within such time
as may be specified but not exceeding 3 days by the Disciplinary Authority. If it is necessary
the Disciplinary Authority shall hold an enquiry and take the necessary action.

Appellate Authority:
The workman shall have the right of appeal to Appellate Authority. The
appeal shall be submitted within 15 days of receipt of the order of the Disciplinary Authority,
and the Appellate authority shall dispose of the appeal within 30 days of the receipt of the
appeal. The appellate authority is the next higher authority to disciplinary authority.

INDUSTRIAL DISPUTES
Dispute, in general sense, is the expression of differences over some issues of
interest between two or more parties. Industrial disputes like problems of indiscipline and
their effective management are on the major issues in maintaining good Industrial Relations
in the Country / Organization.

Definition:
According to Industrial Disputes Act, 1947
Industrial Disputes means any dispute or difference between employers and employers or
between employers and workers or between workmen and workmen, which is connected with
the employment or non-employment or the terms of employment or with the conditions of
labour of any person.
An individual dispute between an employer and one of his workmen is by itself not
an industrial dispute, which can be referred to under section 10 of the Act. But such a dispute
may become an Industrial dispute provided a majority of workmen, or union of workmen
takes up the cause of particular workman, in the particular industrial establishment.
The causes of industrial disputes are many and varied and sometimes even trivial. In India,
various causes of Industrial disputes may be grouped into four categories: economic factors,
management practices, trade union practices and legal and political factors.

Machinery for Handling Industrial Disputes

In managing industrial disputes, management can take certain actions. These
actions may be grouped into two categories:

Prevention of industrial disputes:

The preventive machinery has been set up with a view to creating harmonious relations
between labour and management so that disputes do not arise. It comprises of the following
measures.
57

Workers Participation in Management

Collective Bargaining

Grievance Procedure

Tripartite bodies Code of Discipline

Standing Orders

Settlement of Industrial Disputes:

If preventive machinery fails, then the industrial dispute settlement
machinery should be activated by the Government under Industrial Dispute Act, 1947,
because no-settlement of disputes will prove to be very costly to the workers, management
and the society as a whole. This machinery consists of
(a) Conciliation
(b) Court of Enquiry
(c) Voluntary Arbitration
Adjudication (Compulsory Arbitration)

Major Industrial Relations Events in Visakhapatnam Steel Plant

During Construction phase, discplaced persons quite often
organised Strikes and Rastha Roko agitations demanding Employment in
Visakhapatnam Steel Plant. During 1985-86, approximately 9,515 man days
were lost in Construction activity because of the above agitations. Similarly in

1986-87, in the wake of death of an employee in the Health Centre, employees resorted to
sudden work stoppage demanding extension of adequate Medical Facilities.
In the Operation phase, in the year 1991-92 following the death of 2 employees in an
Accident occurred in Sinter Plant, there was an illegal work stoppage at Sinter Plant from
24.8.1991 which culminated into a plant wide strike from 3.9.1991 to 6.9.1991 demanding
immediate policy for provision of immediate employment to the dependent of the deceased
employee on compassionate grounds. During the year 1993-94 (16 th 22nd October) a week
Plant wide Strike took place on account of a conflict between CISF personnel and VSP
employees on the issue of an entry through the main gate. Subsequently, a gate monitoring
system was introduced with the officers in both line departments as well as staff departments
to monitor that such incidents do not recure.
As a preventive measure to arrest industrial relations problems a great
amount of persistence and preservence has been professed by the management in inculcating
58

a sense of positive discipline in the employees. It was also impress upon them through
various HRD Programmes that the employees may act with restraint in all the matters and to
adopt only peaceful methods of representation. The employees have also come through the
stages of Construction, Commissioning and Operation and have been made to understand that
the pressure tactics, arm-twisting methods of work stoppages and stoppages of production
units would result only in deterioration of industrial relations and in no way help bring them
any solace.
The following shows Loss of Man days due to Industrial Relations Events in Year wise.

WORKERS PARTICIPATION IN MANAGEMENT

Workers Participation, also known as Labour participation or Employee
participation, in management is a concept shrouded with so much vagueness that for different
people, it has different meanings. The basic reason for this perceptual difference is due to
different pattern of practices and programmes adopted by various Countries for implementing
workers participation in management. Many Industrial Relations experts regard it as an
essential step involving redistribution of power between management and workers in the
direction of industrial democracy though there are differences of views over the content and
level of participation. The principal forms through which workers participate are Information
sharing, Joint consultation and Suggestion schemes.

The various forms of workers participation in management have assumed great importance
these days because it serves the following purposes

Reduced industrial unrest

Maintaining good Industrial Relations

Higher productivity

WORKERS PARTICIPATION IN VISAKHAPATNAM STEEL PLANT

Management of Visakhapatnam Steel Plant also facilitates Workers Participation which
secures a right for the recognised union in representing their views and opinions regarding
production, safety, canteen and township development etc., through the formation of different
Committees at Shop floor and Plant level.
But these committees constitute the
representatives of recognised union, leaving behind the opinions of the other unions that
constitute to around 60% of employees. This lead to the inter-union rivalry as the nonrecognised unions were set aside without being consulted regarding the policy matters,
creating difficulties in implementation of issues that was settled through negotiations.
59

EMERGENCE OF JCM
To overcome this limitation an alternative method called Joint Consultative
Machinery was introduced. Joint Consultative Machinery constitutes representatives of all
the unions, which got more than 15% of the total votes polled during the union elections.
Their number will be equal to the management representatives being nominated by the
organisation. This facilitated the non-recognised unions too in presenting their opinions. The
total numbers of union representatives are equally divided among the unions having more
than 15% of the polled votes. Joint Consultative Machinery extends its scope in the areas like
production, productivity, quality, safety, corporate affairs, work related issues, incentives,
deployment/re-deployment, job rotation etc., According to the terms of settlements
departmental safety committees with an apex plant level safety committee were being
constituted to lookafter all issues relating to safety. And each department of the organisation
constitutes Joint Consultative Machinery to discuss production, welfare and so on covering
all the matters of employees and management. In addition, a company levels Corporate
Business Information Forum (CIBF) to discuss functional aspects of Visakhapatnam Steel
Plant with the participation of top management and senior representative of major unions.
Facilitating all the major unions in Joint Consultative Machinery helped a lot in diminishing
the Inter-union rivalry and led to the establishment of peaceful Industrial Relations climate.
But, Joint Consultative Machinery works only when the recognised union co-operates with
other union. CITU, when in chair, accepted to share it but, AITUC didnt so, as a result of it,
Joint Consultative Machinery came to standstill. This non-performance of Joint Consultative
Machinery led to the establishment of Participative Fora in a different from.
The various Participative Committees formed by the management along
with the statutory committees constitute representatives from management as well as from
recognised union, in equal numbers. These representatives carry on the functions of these
Committees that include provident fund trust, sports council, town development committee,
community welfare centre etc. The various Participative Committees with number of
members, scope of function, periodicity of the meeting and chairman/convernor of the
committees are shown in the Table.
GRIEVANCE MANAGEMENT
Grievance is a state of dissatisfaction over some issues related to
employment. Generally, expression of this dissatisfaction in oral form is known as complaint
while in written form it is known as grievance. In the organisational settings, employees may
have some grievances against employers, in the same way, employers may have grievances
against employees. Grievance Management is very essential to maintain good Industrial
Relations, which increases productivity and effectiveness of an organisation. Grievance
should be redressed by adopting proactive approach rather than waiting for the grievance to
be brought to the notice of management. In many cases, even the proactive approach of
management for removing the causes of grievances may leave some scope for the emergence
of grievances. For handling such grievances, a Grievance Handling Machinery, known, as
Grievance Procedure is required. The Grievance Procedure is a problem solving, disputesettling machinery which has been set up following an agreement to that effect between
labour and management. It is the means by which a trade union or an employee makes and
processes his claim that there has been a violation of the labour agreement by the company.
60

Grievance Procedure is a device through which grievances are settled, generally to the
satisfaction of employees/trade union and management.
Grievance Redressal Procedure at VSP
The objective of Grievance Redressal is to provide easily accessible machinery
for settlement of grievances of executives and to adopt measures as would ensure expeditious
settlement of grievances leading to increased satisfaction on the job and resulting in improved
productivity and efficiency of the organisation. In Visakhapatnam Steel Plant the Grievance
Procedure consists of 3 stages, they are
Stage-I
An aggrieved employee shall send his grievance to his Head of the Department within
a period of 3 months of its occurrence. The Head of the Department will give a personal
hearing and try to resolve the grievance at his level and intimate his decision to the aggrieved
employee in writing within a week.
Stage-II
If the aggrieved employee is not satisfied with the reply of Stage-I authority or has
not got a reply within the stipulated time, he may submit his grievance to the Divisional
Head. The Divisional Head concerned shall go through the Grievance and settle the same at
his level. The decision taken shall be communicated in writing to the aggrieved employee
within 15 days of receipt of the grievance.
Stage-III
If the aggrieved employee is not satisfied with the reply of Stage-II or has not got
reply within the stipulated time, he may address his grievance to the Grievance Council. The
Grievance Council shall examine the Grievance in detail and give their recommendations
before the end of the month following the month in which the grievance council receives the
representation. The aggrieved shall have the right to represent his grievance before Chairmancum-Director direct if his grievance is not settled to his satisfaction at Stage-III or within the
time limits as prescribed under the Companys Grievance Redressal Procedure.
The Machinery for Grievance Redressal at Departmental Level, Plant Level and Company
Level shall consists of
Area Grievance Redressal Forum(AGREF)
All Major Departments will have AGREF and the Small Departments will be clubbed into
groups with each group having one AGREF
The Forum consists of

Head of the Department

---

Chairman

Zonal Personnel Incharge

---

Convenor

Representative of Finance Department

--61

Member

Representative of Marketing Systems Department

---

Member

One Representative of from each major Unions

---

Member

Central Grievance Redressal Forum(CENGREF)

It consists of
Works Division:

Executive Director (works)

---

Chairman

Plant Personnel Incharge

---

Convenor

General Manager (Industrial Relations)

---

Member

Joint General Manager (Finance)

---

Member

One Representative from each union

---

Member

---

Chairman

Non-Works Department:

General Manager (Personnel)

Manager (Personnel)

General Manager (Marketing Systems)

Chief (Production)

Joint General Manager (Finance)

One Representative from each Union

The following matters are comes under the grievance redressal. They are

Payment of Wages and Incentives

Increments

Deduction/Recovery of dues

Allowances and Advances

Seniority and Promotion

Attendance and Leave

Workmens Compensation

---

Convenor
---

---

Member
-----

62

Member

Member

Member

Working conditions at place of work

Transfer etc.,

INDUSTRIAL RELATIONS
PRODUCTIVITY

AND

ITS

IMPACT

ON

PRODUCTION

AND

Industrial relations do not emerge in Vacuum they are born out of

employment relationship in an industrial setting. It is the Industry which provides the
environment for industrial relations. The Production and Productivity of an Organisation
depends upon the type of Industrial Relations or the events that take place in an organisation
which are harmful to industrial relations.In Visakhapatnam Steel Plant the Total Man days
lost was 1,87,015 due to various Industrial Relations events that took place in the last ten
years. 47% of the total man days were lost i.e., 87,795 lost due to Plant-wide Strike from
16.10.93 to 22.10.93 on account of a conflict between Central Industrial Security Force
Personnel and Visakhapatnam Steel Plant Employees on the issue of entry through Main
Gate. Subsequently gate-monitoring system was introduced with the Officers in both Line
Departments as well as Staff Departments to monitor and see that such events do not reoccur.37% of the total man days were lost i.e., 69,195 lost due to accidents that took place in
different departments in the last ten years.16% of the total man days were lost i.e., 29,922 lost
in the last ten years due to the following incidents.

Demanding adequate Safety measures at working places

Demanding revision of Incentive/reward schemes

Oppossing Dis-investment policy of the Central Government

But the Impact of Industrial Relations events on Production was not so severe in the last ten
years. The Production details of the company shows that the production was increasing
continuously in the last ten years. If the events did not take place may be the production
would have further increased.When it comes to Productivity, the impact of Industrial
Relations events on Productivity was not so severe. The Productivity details of the company
shows that the productivity was increasing continuously in the last ten years. If the events
did not take place may be the productivity would have further increased.
Visakhapatnam Steel plant being one of the Integrated Steel Plants in the Country. The loss
of production in one department will affect the other department and the cost of loss of
production is also depends upon the type of manufacturing department. If it is a major
production unit the loss is very severe if it is a service unit the loss is less.
The Production and Productivity of an Organization is good when there is a
good Industrial Relations. The Industrial Relations would be good when the management
provides safety measures, incentives, good internal communication and good welfare
activities to the employees. At the same time the Trade Unions should also function
effectively to improve the Industrial Relations.

SOCIAL SECURITY MEASURES:

63

Purpose:
SI.N
O

NAME OF
THE
FORUM

01

CENTRAL
SAFETY
COMMITTEE

02

CANTEEN
MANAGING
COMMITTEE

03

SHOP FLOOR
COOPERATIO
N COMMITTEE

04

SHOP FLOOR
SAFETY
COMMITTEES

05

PROVIDENT
FUND TRUST

06

VSP SPORTS
COUNCIL

07

TOWN
DEVELOPMEN
T COMMITTEE

SCOPE OF
FUNCTION

Repres
entativ
es
Mgmt /
Worke
rs

PERIODI
CITY OF
THE
MEETING

Chairman
/
Convenor

No. of Comm
ttees

One for Plant a

one Pit Safety
Commi-ttee fo
Each Mine

To maintain proper
safety and health at
work and to review
periodically the
measures taken on that
behalf and to work in
line with the provisions
laid down in the
Factories Act, 1948
Closely monitor
functioning of the
different (15) canteens
in the Company
To discuss and sort out
day to day shop level
issues.

17

17

Once in 3
months

ED(W)/
DGM(Safe
ty)

05

05

Once in a
Month/ or
as required.

7
to
10

7
to
10

Once in a
Month

To discuss Shop floor

issues related to Safety,
Fire and Occupational
Health and to take
decisions for ensuring
safe working conditions
and safe practices.
To supervise and
administer the
functioning of Provident
Fund of VSP.
To lay down policies on
sports and organise
sports activities in the
Company
For development of
Company Township in
the areas of housing
maintenance, shopping,
infrastructure facilities
etc.
64

7
to
10

7
to
10

Once in a
Month

I/c. Plant
Per./Incharge
Canteens
Concerned
HOD/Zona
l Pers.
Exec.
Concerned
HOD/Dept
. Safety
Rep.

04

04

Once in a
Month

GM(F&A)

One

10
+
02
*
16

12

Once in two
months

One

16

Once in a
Month

GM(CP&
C)/
DM(Sports
)
DGM(TA)
-I/c /
AGM(Esta
te)

One

(35+2)
including min

(35+2)
including min

One

08

09

10

SUPERANNUA
TION BENEFIT
FUND TRUST

To provide provision for 07

social security needs of
the employees and
administering
Superannuation Benefit
Fund Scheme
COMMUNITY
To provide recreation, 10
WELFARE
conduct sports & games
CENTRES
and cultural activities
for the benefit of the
residents of respective
colonies.
APEX
To discuss all corporate 11
INFORMATION issues including matters
FORUM
relating to its
production,
productivity, expansion,
Financial, Marketing
and various initiatives
taken in the present
business scenario that
has a strong bearing on
the company.

05
+
02
*

Once in a
Month

GM(F&A)
/
DGM(CP
&C)

20

Once in
Month /or
as and when
required

11

Once in
quarter

President
& Secy.
Rep. Of
Mgt/
Rep. Of
Union
CMD/
DGM(P)CER &
NW

One

(6+2)
including min

One

To have a comprehensive scheme of joint participation and to provide for a structured forum
for discussions with the Workers Representatives, i.e., Recognized Union to sort out work
related issues including welfare matters and to provide wider participation among workers in
managerial activities Participative committees at company level in matters like Safety,
Production, Canteen, Welfare, Sports, Recreation, etc., are being constituted with
representatives of Management and Workers.

11

PLANT LEVEL
PRODUCTION
AND
PRODUCTIVIT
Y COMMITTEE

The forum is for 12

information sharing and
not
for
collective
bargaining. All issues
pertaining to plant such
65

12

Once in
quarter

ED(W)/
DGM(P)PP Ic

One

as
production,
productivity,
breakdowns
and
maintenance etc shall be
discussed to improve
the production and
productivity within the
rules and policies of the
company.
The forum is for
information sharing and
not
for
collective
bargaining.
Issues
pertaining to quality of
treatment, availability
medicines, control over
empanelled hospitals,
welfare related issues of
employees,
reimbursement benefits
etc.

12

MEDICAL
COMMITTEE

Monthly

GM(M&
HS)/
CS(Micro
) & I/c
Med.Adm
n

One

13

CORPORATE
SOCIAL
RESPONSIBILI
TY
COMMITTEE

The forum is for

information sharing and
not for collective
bargaining. All issues
pertaining to
implementation of CSR
activities and initiatives
shall be reviewed.
Information sharing
shall be within the scope
of activities including
suggestions by the
members restricted to
the CSR policy of the
company.

Bi-monthly

DGM(CS
R)/
MGR(ST
AFF)/CS
R

One

14

MARKETING
&
FINANCE
INFORMATION
SHARING
COMMITTEE

The forum is for 10

information sharing and
not
for
collective
bargaining.
Issues pertaining to
marketing performance,
financial achievements
and initiative shall be
discussed.
Information
sharing
66

10

Bi-monthly

DGM(Mk
tg)/Sr.Mgr
(Mktg)

one

shall be within the scope

of the functioning of
respective departments
and within the policies
of the company.
15

MINES
COORDINATI
ON
COMMITTEE

The forum is for 10

information sharing and
dissemination and not
for
collective
bargaining.
It
may
discuss. The
issues
relating to performance
of
mines
like
production,
despatch,
action plan to make up
short fall if any , cost
reduction, wastage etc.
Such other aspects as
the
Chairman
may
desire to discuss.

10

Once in
quarter

GM(Mine
s)/
Mgr(Adm
n.)-Mines

Objectives:
Central Safety committee :
To promote cooperation between the workers and the Management in maintaining proper
safety and Health at work and to review periodically the measures taken in that behalf.
To provide a safe and healthy working environment to all employees.
To elicit the fullest cooperation of the employees through their representatives at the
different bipartite forums in effectively implementing the occupational Health and Safety.
Policy of Visakhapatnam Steel Plant (VSP).
Ensuring implementation and compliance of the statutory provision on Safety, Health and
Environment by the employees.

Canteen Managing Committee

To device suitable systems to ensure supply of food stuffs as per the prescribed standards
of quality and quantity.
To take suitable measures to ensure efficient functioning of the
Canteens in all respects,
to provide best possible service to the employees during the prescribed hours of working.

Provident Fund Trust

67

One

To supervise and administer the functioning of Provident Fund of VSP.

VSP Sports Council

1.
2.
3.
4.
5.
6.
7.

The laid down policies on sports and organize sports activities in the Company.
The main objectives of the VSP Sports Council shall be:
To promote sports and games in Visakhapatnam Steel Plant.
To spot the sports talent from among the employees and VSP School Children
To provide facilities and opportunities to improve the talent
To encourage the sports talent by conducting periodical tournaments
To co-ordinate with Steel Plants Sports Board (SPSB) and participate in the
tournaments conducted by SPSB and also conduct tournaments under the auspices of
SPSB.

Town Development Committee:

For development of Company Township in the areas of Housing, Maintenance,
Shopping, Infrastructure facilities etc.,

Superannuation Benefit Fund Trust:

To provide provision for social security needs of the employees and administering
Superannuation Benefit Fund Scheme

Community Welfare Canters:

To provide recreation, conduct sports & games and cultural activities for the benefit
of the residents of respective colonies.

Apex Information Forum

a. To share and disseminate information relating to the business of the company.
b. To help in developing commonality of perception about the affairs of the
company.
c. To elicit the cooperation of the employees through the unions in appreciating
the given business situation.

Plant Level Production & Productivity Committee:

o To share and disseminate information relating to the production and
productivity of the Company.
o To elicit the cooperation of the employees through the union in reaching the
production
68

o Target of the company and to seek the cooperation of the employees to achieve
the Vision, Mission and Objectives of the company.
Medical Committee:
To share and disseminate information relating to extending medical benefits to
Employees and their dependents including referral for specialized treatment. To elicit cooperation of the employees through the union in over all improvement/development of the
department.
Corporate Social Responsibility Committee:

To share and disseminate information relating to the activities of the company.

To elicit the cooperation of the employees through the union in over all
Implementation of CSR activities.

Marketing & Finance Information Sharing Committee:

o To share and disseminate information relating to the Marketing and Finance
Performance of the company.
o To elicit the cooperation of the employees through the union in order to
o Achieve the target of the company
Ines Coordination Committee:
To share and disseminate information relating to the business of the company.
To help in developing commonality of perception about the affairs of the company.
To elicit the cooperation of the employees through the unions in appreciating the
given business situation.
Project Works Committee:
To share and disseminate information relating to the business of the company.
To help in developing commonality of perception about the affairs of the company.
To elicit the cooperation of the employees through the unions in appreciating the
given business situation.
Central Welfare Committee
To share and disseminate information relating to non-statutory welfare
Schemes extended to the employees of the company.
To elicit the co-operation of the employees through the union in implementing
The non-statutory welfare scheme for effective implementation.
Control of non-confirming services:
69

The CER / Zonal Personnel Executives will carry out periodic evolution to identify
non-confirming services / records wherever necessary and take appropriate corrective
measures.

Shop Floor Cooperation Committees:

The objectives of the Committees shall be
To foster a climate of participation and cooperation in the Shop-Floor
To develop among workers and shop-floor managers a spirit of collaboration and
mutual
appreciation of problems and thereby promote better understanding
and
harmonious industrial
relations all throughout.
To acquaint employees of the shop-floor with information relating to the
performance of the shop, its production and productivity and generate suggestions to
formulate action plans for improvement.
Shop Floor Safety Committees:
To discuss shop floor issues related to Safety, Fire and Occupational Health and to
take decisions for ensuring safe working conditions and safe practices.

CERTIFIED STANDING ORDERS

70

SCOPE OF APPLICATION :
These Standing Orders will come into force from a date determined in accordance
with the provisions of Section 7 of Industrial Employment (Standing Orders) Act, 1946 and
shall apply to all the workman of the Establishments of Visakhapatnam Steel Project/Plant of
Rashtriya Ispat NigamLimited and its Mines and Quarries.

DEFINITION:
In these Standing Orders, unless there is anything repugnant to the subject or
context.
COMPANY means the Visakhapatnam Steel Project/Plant and its Mines and Quarries of
Rashtriya Ispat Nigam Limited.
MANAGEMENT means the Chief Executive or the person in charge of the Visakhapatnam
Steel Project/Plant and other persons expressly or by implication deriving authority from him
or them or from the Company to act in matters relating to the Visakhapatnam Steel
Project/Plant.
PROJECT/PLANT means Visakhapatnam Steel Project/Plant and its Mines and Quarries.
WORKMAN/EMPLOYEE includes any person employed in the Project/Plant and Mines
and Quarries as defined in the Industrial Employment (Standing Orders) Act, 1946.
COMPETENT AUTHORITY means any Executive/Officer of the Company who by virtue
of his position has authority over the workmen, and/or is authorized /delegated to exercise
powers in regard to matters covered under these Standing Orders.
AUTHORISED MEDICAL OFFICER means the medical officer of the Company and
includes any other doctor, medical officer or medical board nominated/authorized by the
management for the purpose of deciding medical fitness or otherwise of workmen for
employment/work in the Project/Plant.
NOTICE means and includes a notice in writing required to be given to a workman or
displayed on the Notice Board for the purpose of these Standing Orders.
NOTICE BOARD means the notice board specially maintained in a conspicuous place at or
near each of the main entrance to the works and at the Time Offices for the purpose of
displaying notice required to be posted or affixed under the provision of these Standing
Orders.
MINES will have the same meaning as defined in Sec.2(i) of the Mines Act, 1952 and will
include Quarries and Ores.
CLASSIFICATION OF WORKMEN:
Workmen shall be classified as:
a) Permanent d) Casual
b) Probationer e) Apprentice
71

c) Temporary f) Trainee
DEFINITION OF CLASSIFICATION:
a) Permanent means a workman engaged to fill a permanent post in the regular
establishment of the Company and who has satisfactorily completed the prescribed
probationary period. On satisfactory completion of the probationary period, the same shall be
confirmed in writing by the Management.
b) Probationer means a workman who is provisionally employed against a post in the
regular establishment of the Company with a view to ascertain his suitability for the post and
who is serving the probationary period.
c) Temporary means a workman who has been appointed for a specified limited period or
for doing work of a temporary nature, or who is employed temporarily to handle an increased
volume of work of a temporary nature for a limited period.
d) A Casual Workman is a workman who has been employed on a work of casual nature.
e) Apprentice means a learner who is paid a stipend and whose terms and conditions of
apprenticeship are governed by the provisions of the Apprentices Act, 1961 as amended from
time to time.
f) Trainee means a learner who is engaged by the Company to undergo training in terms of
an agreement of contract of training with stipend.
PROBATIONARY PERIOD:
(a) The period of probation of a workman shall be for 12 months from the date of joining the
Company which may be extended for a further period or periods at the discretion of the
management for reasons recorded in writing. The period of extension of probation shall not
exceed six months which means the total period of probation shall not exceed 18 months. The
probationary appointment will cease and determined on the last day of the period of probation
when the workman has been informed in writing of the satisfactory completion of the
probation. In the absence of such intimation within one month from the date of completion of
the probation period, the workman shall be deemed to have satisfactorily completed the
period of probation on such last day.
(b) The probationary period shall include breaks due to sickness, accident, leave, lockout,
strike not being an illegal strike or involuntary closure of the establishment.
(c) If during the period of probation or during the extended period of probation, a workman is
charge sheeted for any misconduct or any disciplinary action is under contemplation, the
period of probation or extension of probation shall be deemed to have been extended till the
conclusion of the disciplinary proceedings. If, as a result of proceedings, the workman is not
found guilty of the charges, his probation shall
72be declared with effect from the due date of

completion of probation period or extension of probation period and increment due to him
shall be released with effect from the due date. If as a result of disciplinary proceedings, the
workman is found guilty of the charges, he shall be awarded punishment as per Standing
Orders.

PROBATION ON PROMOTION TO A HIGHER POST:

(a) The workman on promotion to a higher post shall be on probation for a period of six
months.
The workman shall be deemed to have been confirmed in the post unless he is informed in
writing by the management that he is not found suitable and thus reverted to his lower post
either
before the completion of probationary period or/and within one month from the date of
completion of probationary period. The workman may at any time during the probation
period
be reverted to his lower post by a written order by assigning reasons.
(b) Probationary period shall include breaks due to sickness, accident, leave, lockout, strike
not being
an illegal strike or voluntary closure of the establishment.

MEDICAL FITNESS AND EXAMINATION AND TERMINATION OF

SERVICE ON
MEDICAL GROUNDS :
No person shall be appointed except with a certificate in the prescribed manner from the
Authorized Medical Officer for the purpose of deciding his physical fitness or otherwise for
employment. If during service, a workman is found permanently unfit by the Chief Medical
Officer, he will be liable to be discharged from service, provided that where any such
employee so desires, he shall be referred to a Medical Board of three officers, set up by the
Management, on payment of Rs.10/- by the employee, which shall be refunded to him if the
employee is declared fit by the Board. The Boards decision shall be final in this regard.
DATE OF BIRTH :
(a) Every workman shall indicate his exact date of birth to the employer or the officer
authorized by him in this behalf, at the time of entering service of the establishment. The
employer or the officer authorized by him in this behalf may, before the date of birth of a
workman is entered in his service card, require him to supply :(i) His matriculation or school leaving certificate granted by the Board of Secondary
Education or similar educational authority; or
(ii) A certified copy of his date of birth as recorded in the registers of a Municipality, local
authority
73

or Panchayat or Registrar of Births;

(iii) in the absence of either of the aforesaid two categories of certificates, the employer or the
officer authorized by him in this behalf may require the Workman to supply, a certificate from
a Government Medical Officer not below the rank of an Assistant Surgeon, indicating the
probable age of the Workman provided the cost of obtaining such certificate is borne by the
employer;
(iv) Provided that the employer will have the right to refer the matter to a Medical Board to
be constituted for the purpose if considered necessary.
(b) The date of birth of a workman once entered in the records of the Establishment shall be
the sole evidence of his age in relation to all matters pertaining to his services including
fixation of date of his retirement from the service of the Establishment.
APPOINTMENT CONDITIONS:
1. A workman shall devote his whole time and attention of his duties and shall not carry
on or be concerned in carrying on any other business or occupation whatsoever with
or without remuneration during the period of service.
2. No workman while in the service of the Company shall accept any other
employment or undertake any other service or profession with or without
remuneration either direct or indirect without permission. No private
practice or part-time engagement shall be allowed. This, however, shall
not apply to participation of a workman in voluntary organizations related
to social, cultural and sports activities. All Workmen shall abide by such
rules, regulations, orders, directions and instructions as are in force or as
the Management may frame from time to time governing the terms of
employment, conditions of service, pay and allowances etc., relating to
matters included in the Schedule to the Industrial
3. Employment (Standing Orders) Act, and shall eschew all wasteful work
practices and obey all such orders and directions as they may receive from
their superiors
4. All workmen shall accept the necessity of measures of rationalization and
the Company shall be entitled to introduce such measures so as to
improve the Companys overall standard of efficiency, by reducing costs
and increasing its productivity subject to provisions of Industrial Disputes
Act.
5. All workmen shall observe constitutional means and shall eschew
agitational steps and/or concerted actions or any other means which may
have the effect of interrupting or disrupting the work of the Company
and/or the normal functioning of the various
departments/divisions/sections/offices and/or the operation of different
services in the Company or which may have the effect of causing damage,
delays, inconvenience etc., to the Companys services.
6. Workmen shall perform all such duties as are related to his job and all
duties incidental and ancillary thereto which the management shall lay
down and/or assign from time to time. Such duties, however, shall not

74

include jobs which are substantially lower or different in nature and

content than the level/category to which workmen belong.
7. No workman shall during working hours engage himself in any work other
than that entrusted to him by the Company.
8. No workman shall interfere in or hinder performance of Companys duty to
enforce discipline.
9. No employee owning a house in his name or in his spouses name shall let
out the same to a foreigner/foreign mission, foreign organization (including
international organization) without prior approval of Competent Authority.
Every employee shall at all times
(i) Maintain absolute integrity;
(ii) Maintain devotion to duty; and
(iii) Conduct himself at all times in a manner which will enhance the reputation of
the Company.

TRANSFER OF WORKMAN :
1.

A workman may be transferred according to exigencies of work from one

shop or department to another or from one station to another or from one
establishment to another under the same employer. Provided that the
wages, grade, continuity of service and other conditions of service of the
workman are not adversely affected by such transfers.

2. Provided further that a workman is transferred from one job to another,

which he is capable of doing, and provided also that where the transfer
involves moving from one State to another such transfer shall take place,
either with the consent of the workman or where there is a specific
provision to that effect in the letter of appointment, and provided also that
(i) reasonable notice is given to such workman, and (ii) reasonable joining
time is allowed in case of transfers from one station to another.
3. Provided further no transfer of a workman from one place to another shall
be made malafide under the guise of management policy.

ACTING :
A workman may be required to act in a higher post when
ordered to do so without, however, conferring on such person any right to the
said higher post. Acting allowance shall be admissible in case of workman
engaged in a manufacturing process (as defined in Factories Act) when they act
in another higher grade or post of skilled, semi-skilled or technical nature for not
less than one day and in case of other workman as/when the vacancy is not for
less than 7 days.

IDENTITY BADGE :

75

1. Every workman will be supplied with an Identity Badge and/or other

means of identification. 10.2 Every workman shall take utmost care to
ensure against loss or theft of the Identity Badge. Loss or theft of the
badge shall be immediately reported in writing to the workmans
supervisor and the issuing authority. Replacement of Identity Badge in
case of loss or theft will be charged at Rs.10/-. However, for old damaged
Identity Badges, fresh badge will be issued by the Management free of
cost. Workman shall also be responsible for obtaining fresh badge free of
cost when the old one becomes indecipherable.
2. The Identity Badge shall be retained by the workman and shall not be
parted with or transferred to another person. The badge shall be shown on
demand to the Security Personnel or any Executive Officer of the
Project/Plant or any person authorized by the management.
3. Every workman shall wear identity badge or other means of identification
in a conspicuous position on his dress and/or hold the same in his custody
while on duty as directed by the management from time to time. Any
workman failing to comply with this shall be liable to be shut out or asked
to leave or be removed from the premises if he has already entered the
premises.
4. Every workman shall on suspension, resignation, termination,
superannuation or on dismissal from service surrender to the Competent
Authority the Identity Badge along with all other items and materials that
belong to the Company and entrusted to him or which are in his
possession.

ENTRY AND SEARCH :

1. No workman shall enter or leave the premises except by the gate and/or
entry/exit place provided for the purpose.
2. Any workman while entering or leaving the premises or at any time may
be searched by the Security Personnel or any other person authorized for
the purpose, provided that women shall be searched only by women.
3. Every workman shall show his identity badge on demand to the Security
Personnel and/or Time Office Personnel on duty or to any Executive/Officer
of the Project/Plant or any other Person authorised by the management
while passing through the entry/exit gate and/or places provided and/or on
demand by the above at any other place within the premises.
4. A workman shall not leave the place and/or places of work during working
hours without permission of the Competent Authority.
5. No workman who is found to be under the influence of alcoholic drink or
drug or suffering from contagious or infectious disease or in possession of
any article prejudicial to the security of the Project/Plant or other workmen
or deemed by the Competent Authority to be likely to create disturbance
shall enter or be allowed entry into the premises although otherwise
entitled to do so. If such a workman is already in the premises, he may be
asked to leave the premises by the Competent Authority, who shall have
the right to remove such workmen76
from the premises.

6. No workman shall bring with him into the place of work article of any kind
which is capable of being used in connection with the work of the
Project/Plant without permission of the Competent Authority. The
Management reserves the right to regard any such article found in the
possession of any workman whilst in the premises as the property of the
Company and in the wrongful possession of the workman. Security
Personnel and/or any other person authorised by the management shall
have the right at any time to open and search any packets, bundle, cover
etc., carried by a workman within the Project /Plant/Premises and/or
entrances and exits thereof.
7. No workman shall enter his place of work more than half-an-hour before
commencement of his prescribed duty hours nor shall any workman
remain in his place of work more than half-an-hour after the end of his
prescribed duty hours, unless required by the Competent Authority.

ATTENDANCE AND DEDUCTION OF WAGES FOR LATE

ATTENDANCE, ANSENCE
FROM DUTY ETC
1. Attendance shall be marked daily according to the rules prescribed from
time to time for each department/division/section/office, etc., which shall
be displayed on the Notice Board.
2. Workmen who are required to sign in the attendance register shall mark
the time of reporting for duty and the time of leaving duty.
3. Workmen who are required to punch time card shall get cards punched in
the time clock at the time of reporting for duty and at the time of leaving
duty.
4. Management may also require a workman to mark attendance by
punching his card or otherwise at the beginning and at the end of shifts
and at the beginning and at the end of intervals.
5. All workmen shall report to their place of work punctually at the specified
time in the manner directed by the management from time to time.
6. No workmen shall be accepted on duty if he is late by more than 15
minutes on any day or comes late for more than 3 times in a calendar
month and he may be shut out for that day and treated as absent with
consequent deductions of wages as per the provisions of the Payment of
Wages Act, 1936 except in those cases where in the interest of the work
he has been allowed to work under written permission of an authority not
below the rank of Foreman/Shift In-charge.
7. Workmen shall not leave their place of work during the hours of work
prescribed for them. If, however, a workman wants to leave the place of
work under special circumstances during the hours of work prescribed for
him, he may be permitted by Controlling Authority to leave the place of
work but in such an event no wages shall be paid for the duration of such
absence if it is not for official reasons. Deductions of wages in such cases
shall be as per provisions of Payment
77 of Wages Act, 1936.

8. A Workman who is absent from duty without prior or post facto sanctioned
leave shall be liable for deduction of wages for the period of his absence in
accordance with the provisions of the Payment of Wages Act, 1936.
9. A workman who, after reporting for work, abandons his work without valid
reasons shall be shut out for the day.
10.If a workman, although present in his place of work, fails to do his
assigned work or part thereof
11.and/or refuses to carry out his work or part thereof or slows down the pace
of work, he shall be
12.deemed to be treated as absent for the whole day in case the disruption,
cessation or slowing down of work commences before the interval for
rest, and/or before completion of four hours work and for half a day in case
it takes place after the interval and/or on completion of four hours work
and wages shall be deducted accordingly.

PERIODS AND HOURS OF WORK :

1. The working hours for a workman shall be forty eight hours in any week
excluding hours of intervals subject to provisions of Factories Act, 1948
and Rules. Notice showing the hours of periods of work for every class or
group of workmen in the Company for each shift shall be displayed on the
Notice
2. Board. Workman shall be required to work the whole or part of subsequent
shift beyond his schedule hours of work in case of necessity, subject to
payment of over time as per rule and subject to modifications in future
settlement between the Union(s) and Management.
3. Time as per the clock kept at the entrance to the place or places of work
will ordinarily be taken as the correct time for purposes of attendance.

SHIFT SYSTEM :
1. The management shall lay down shift systems or revise from time to time
the shift arrangements both in regard to the composition of shifts,
personnel thereof as well as the shift timings according to the exigencies
of work, subject to provisions of law in force.
2. The management may require any workman to work in any shift according
to the exigencies of work.
3. No workman shall leave his place of work unless properly relieved.

SHIFT WORKING : SUBJECT TO THE PROVISIONS OF I.D.ACT :

1. At the discretion of the management more than one shift may be worked
in a department/division/section/office of the Project/Plant. If more than
one shift is worked, the workman shall be liable to be transferred from one
shift to another.

78

2. whenever a shift is re-started or shifts are altered or discontinued, the

management shall give a weeks notice to workmen except when this is
done under the following circumstances :3. If the establishment is a seasonal one where work is carried on
intermittently; or
4. If the closing of the shift is under an agreement; or
5. If as a result of closing of the shift no permanent workman will be
retrenched; or
6. If the closure is due to circumstances beyond the Managements control.

STOPPAGE OF WORK AND CLOSURE :

1. The management may close down either wholly or partially any
department/division/section/office which is affected either directly or
indirectly by workmen stopping work. The workmen concerned shall be
given such notice as may be possible both of closing down and resumption
of work. The notice of closure and resumption of work under this Standing
Orders shall be displayed on the Notice Board at the main entrance or in
the department/division/section/office concerned. The copy of notice shall
be sent to the Recognized Union.
2. In the event of a strike or slowing down of work or any, concerted action
leading to interruption of normal work the Company may close down
either wholly or partially any department/division/section/office. When
closure occurs notice shall be displayed on the Notice Board at the main
entrance to the place or places of work as soon as practicable. When work
is to be resumed, notice of resumption will be displayed at the main
entrance to the place or places of work.
3. The management may, at any time or periods of time, stop or shutdown
any work, department/division/section/office wholly or partially or lay-off
any number of workmen for any period or periods without notice, in the
event of the fire, epidemic, civil commotion, catastrophe, shortage of
power or due to any natural calamity.
4. The Management may at any time in the event of breakdown of
machinery, reduction of shifts,
5. adverse trade conditions, periodical repairs, reconstruction or extensions
or any other causes beyond the control shall shut down any works,
department or section, wholly or partially for a period or periods of lay-off
any number of workmen subject to the provisions of the Industrial
Disputes Act, 1947. The fact of such stoppage or shut down shall be
notified by notice posted on the Notice Board.
6. In the event of stoppage or shut down for any of the causes mentioned
above, other than a lock-out or strike :
7. If occurring during working hours the workman affected shall be notified
by notice on the Notice Board as soon as practicable when work will be

79

resumed and whether they are to remain or leave the place of work. The
workman shall not ordinarily be required to remain for more than two
hours after the commencement of the stoppage. If the period of detention
does not exceed one hour, the workmen so detained shall not be paid for
the period of detention. If the period of detention exceeds one hour, the
workmen so detained shall be entitled to receive wages for the whole of
the time during which they are detained as a result of stoppage. No other
compensation shall be admissible in case of such stoppages. Whenever
practicable, notice shall be given for the resumption of normal work
subject to the provision of I.D.Act, 1947.
8. If the management is unable to provide work for all or any of the workman
affected, the management shall be entitled without notice, to lay-off from
work or duty all or any such workman as the management may select for
the period or periods of time.
9. In the matter of retrenchment, the provisions of the Industrial Disputes
Act, 1947 and Rules framed the render by the appropriate Government, as
amended from time to time, shall be followed.

PAYMENT OF WAGES DURING EMPLOYMENT :

1. Workmen will be paid monthly, either in cash or by cheque at the option of
workmen on a working day during working hours, on or before the tenth
day of the month, for the work performed during the preceding month.
Subject to provision of Payment of Wages Act, every workman shall be
given a wage slip showing the employee number and the gross and the
net amounts payable to him for the wage period and also authorised
deductions made from his wages.
2. Any wages due to workman but not paid on usual pay day on account of
their being unclaimed shall be paid on unclaimed wages pay day which
shall be notified on the Notice Board.
3. A notice specifying the days on which wages are to be distributed shall be
posted on the Notice Board every month.

PUBLICATION OF WAGE RATES :

1. Notice specifying the rates of wages payable to all classes of workmen for
all classes of work and dates from which the rates are in force shall be
displayed on the Notice Board.

SAFETY RULES :
1. All workmen shall be required at all times to observe all safety rules,
practices and procedures as notified from time to time, and to use safety
equipment and appliances as prescribed and provided by management.
2. In the event of accidents in the Project/Plant premises during working
hours, it shall be the duty of the workman to report the accidents to his
superior who shall arrange for his 80
immediate medical attention.

SAFETY APPLIANCES AND DRESS REGULATIONS :

1. Such categories of workmen as may be required and/or specified from
time to time shall, while on duty, use and wear safety
appliances/dress/uniforms supplied to them. Workmen who have been
supplied with safety appliances/dress/uniforms shall use/wear them in
proper order while on duty and exercise proper care in maintaining them
in good condition.
2. The management may also prescribe dress and personal safety
regulations for some or all categories of workmen. If a workman reports for
duty with improper dress, he shall not be allowed to work until he reports
back for duty properly dressed and he shall not be paid wages for the time
so taken by him.
3. Safety equipment and protective equipment provided by the Project/Plant
are intended for use inside the Project/Plant premises only and shall not be
taken out without the permission of the Competent Authority.
4. All workmen shall conform to such regulations as may be prescribed by
the management from time to time relating to :(a) Cleaning/Washing before entering certain specified sections of work;
(b) Wearing uniforms;
(c) Lighting restrictions, restrictions on the use of certain kinds of clothing,
medical and toilet
preparations and restrictions of similar nature.

ESSENTIAL SERVICES :
1. No workman employed in essential services in the premises shall stop
work. The following services shall be considered as essential services :
(a) Watch and Ward, fire, safety and security services.
(b) All communication services including teleprinter, telex, telephone,
wireless, courier service etc.
(c) Essential Transport Services upto 10(Ten) vehicles including
ambulances.
(d) Electric Power generation, transmission of supply.
(e) Water supply.
(f) Medical, Sanitation and Medical health.
(g) Essential maintenance services.
(h) Continuous operation units.

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2. Essential services shall be maintained by the respective workmen working

in the respective department/division/section/office in the event of strike
or lock out.
3. All workmen shall comply with such regulations/instructions as may be
framed from time to time by the management, relating to residence of
workmen in the case of township or other places of accommodation, own
or rented by the Company as may be required in the interest of exigencies
of work of the Company.
4. No workman shall leave the Headquarters except with the prior intimation
to the Competent Authority.

LEAVE :
A workman (other than a Casual Workman, or Apprentice or a Trainee) will be entitled to leave as
follows :

EARNED LEAVE :
Every workman who has worked for a period of 240 days or more during a
calendar year shall be allowed, during the subsequent calendar year, leave for a
number of days calculated at the rate of one day for every twenty days of actual
work performed by him during the previous calendar year.

EXPLANATION :
For the purpose of this Standing Order
(i) Any days of lay-off by agreement or contract, as permissible under these
Standing Orders,
(ii) Maternity leave to female workman not exceeding 12 Weeks,
(iii) The leave earned in the year prior to that in which the leave is enjoyed shall
be deemed to be days on which the workman has worked for the purpose of
computation of the period of 240 days, but he shall not earn leave for these
days. Weekly holidays and holidays as per orders 23 and 24 of these Standing
Orders shall not be deemed as days on which the Workman has worked. Leave
admissible under this Standing Order shall be exclusive of all holidays whether
occurring during or at either end of the period of leave.
1. A Workman whose service commences other than on the first day of
January shall be entitled to leave at the rate laid down in Standing Order
21.1.1, even if he has not worked for the entire period specified in
Standing Order 21.1.1 or 21.1.2 entitling him to earn leave.
2. In calculating leave, fraction of leave of half a day or more shall be treated
as one full days leave and fraction of less than half a day shall be omitted.
3. If a workman does not in any one calendar year take the whole of the
leave allowed to him under Standing Order 1 or 2 any leave not taken by
him shall be added to the leave to be allowed to him in the succeeding
calendar year; provided that the total number of days of leave that may
be carried forward to a succeeding82year shall not exceed 30 provided

further that if a workman has applied for leave but has not been given
such leave, he shall be entitled to carry forward the unveiledleave without
any limit.
4. If the employment of a workman, who is entitled to leave under Standing
Order 21.1.1 or 21.1.2 is terminated before he has taken the entire leave
to which he is entitled, or if having applied for and having not been
granted such leave, the workman quits his employment before he has
taken the leave, he shall be paid leave salary in respect of the leave not
taken.

HALF PAY LEAVE :

1. Every workman will be allowed half pay leave at the rate of twenty
days for each calendar year which may be granted for sickness on
medical certificate from the Authorised Medical Officer and/or for
private affairs. In the first year of service it shall be calculated
proportionately according to the period of service put in by a
workman. This leave will be admissible only after completion of a
calendar year. Half pay leave may be accumulated upto 60 days
only.
2. The provisions of this section as far as they relate to earned leave

and half pay leave shall not operate to the prejudice of any right to
which the persons employed in the establishment may be entitled
under any other law or under the terms of any award, agreement or
contract of service provides for a longer leave with wages than
provided in this section relating to these two types of leave, such
person shall be entitled only to such longer leave.

COMMUTED LEAVE :
1. Commuted leave not exceeding half the amount of half-pay leave due may
be granted on submission of a medical certificate from the Authorised
Medical Officer. The grant of this leave is subject to the condition that :
2. Twice the amount of such leave shall be debited against half pay leave
due.
NOTE:
1. Leave admissible under the Standing Orders 21.2 and 21.3 shall be inclusive
of all and/or any
holidays occurring during the periods of leave.
2. If and when the Employees State Insurance Scheme is made applicable to the
workmen, the
benefit of half-pay leave and commuted leave under these Standing Orders will
be discontinued.

EXTRAORDINARY LEAVE :

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Extraordinary leave for a period not exceeding 75 days

(Seventy five days) at any one time without pay may be granted in special
circumstances when no other leave is by rule admissible, and if the workmen
concerned applies in writing for the grant of such leave. In the case of a
workman who has been in continuous service for a period exceeding one year
and is undergoing treatment for leprosy or tuberculosis or other serious disease
requiring prolonged treatment in a Recognised Sanitorium or Institute or by a
qualified Specialist or a Civil Surgeon, extraordinary leave without pay not
exceeding eighteen months on any one occasion may be granted subject to the
following conditions:- The leave shall be granted on the production of a
certificate from the Authorised Medical Officer or Medical Officer-in-Charge of the
Sanitorium or Institute or the qualified Specialist or Civil Surgeon, as the case
may be specifying the period for which leave is recommended.
The period of Extraordinary Leave shall not count for the following purposes:
(a) For earning Earned Leave;
(b) Sanction of Increment (falling during the Extraordinary Leave period) &
(c) Long Service Award.

MATERNITY LEAVE :
1. A female workman, whether permanent or temporary, shall be eligible for
maternity leave to cover a period of confinement, miscarriage or abortion.
2. The maximum period for which any woman shall be entitled to maternity
benefit shall be twelve weeks, that is to say, six weeks upto and including
the day of her delivery and six weeks immediately following that day.
3. In case of miscarriage or abortion, the entitlement of the leave shall be six
weeks from the date of miscarriage or abortion. The leave shall be granted
on a medical certificate from the Authorised Medical Officer or a Govt.
Medical Officer or Registered Medical Practitioner.

CASUAL LEAVE :
1. Casual leave is intended to meet special circumstances which cannot be
foreseen. Subject to exigencies of Work/Service, a workman may be
granted casual leave of absence with pay not exceeding seven days in the
aggregate in a calendar year. In the case of workmen joining the
Project/Plant after thirtieth June during a calendar year, total number of
days of casual leave permissible during that calendar year will be four.
Casual leave shall not be allowed for more than three days at a time
except in case of sickness. Ordinarily, the previous permission of the
Competent Authority shall be obtained before such leave is taken but
when this is not possible, the Competent Authority shall, as soon as may
be practicable, be informed in writing of the beginning and the duration of
the absence.
2. The Competent Authority has the discretion to refuse, curtail or revoke
leave according to the requirement of work. Weekly holidays and
National/Festival holidays as notified
84 from time to time and occurring in

between casual leave will not be counted as casual leave. Casual leave
cannot be combined with any other kind of leave. Compensatory leave
may, however, be combined with casual leave as indicated hereunder
either by prefixation or by suffixation or by both.

SPECIAL CASUAL LEAVE :

1. Special Casual leave with pay may be granted to a workman as follows :2. For vasectomy operation, not exceeding six days.
3. For tubectomy operation (non-puerperal sterilization) not exceeding
fourteen days to a female workman.
4. For IUCD insertion, one day.
5. Male employees whose wives undergo non-puerperal sterilization
operation may be allowed up to 7 days special casual leave if the
Authorised Medical Officer performing the operation certifies that the
presence of the employee for the period of leave is necessary to look after
his wife during convalescence after the operation. The workman
concerned shall produce the required medical certificate from the
Authorised Medical Officer to be eligible for the above special casual
leave. Prefixing of regular leave to special casual leave is not admissible.
Sundays and Closed Holidays occurring during the period of special casual
leave will be counted as special casual leave.
6. For blood donation, one day.
7. For the day or days on which an employee is unable to, attend duty in
special circumstances (but not or purely personal reasons as is the case
with casual leave) for instance, due to civil disturbance, curfew or strike
(other than strikes connected with the Works/Project), or when an
employee is inoculated or vaccinated and the Medical Attendant certifies,
or takes antirabic treatment, or is participating in sporting event of the
Steel Project or of local, national or international importance in a
representative capacity or to participate, when sponsored by the
Company, in cultural functions/competitions organized by recognized
agency at State/National level with the prior permission of the sanctioning
authority, or suffers an injury in such sporting events or when attending a
camp of the Territorial Army or Scout Camp subject to maximum period of
30 days in a calendar year.

LEAVE TO CASUAL WORKMEN AND TEMPORARY

WORKMEN:
Subject to the provisions of law applicable, casual workmen shall not be entitled
to any kind of leave.

LEAVE TO APPRENTICES :
Apprentices shall be entitled to leave as per the provisions of the Apprentices
Act, 1961 as amended from time to time.

85

Trainees will be entitled to leave as per the terms of their contract of

employment as amended from time to time.

QUARANTINE LEAVE :
Which may be granted to an employee who is necessitated by orders not to
attend duty in consequence of the presence of any infectious disease in his
family or household. Such leave is granted on the certificate of Medical or Public
Health Officer, for a period not exceeding 21 days or in exceptional
circumstances 30 days.

GENERAL CONDITIONS FOR GRANT OF LEAVE :

1. No leave can be claimed as a matter of right and can only be granted after
considering the exigencies of work/service. The Competent Authority has
the discretion to refuse, curtail or revoke leave at any time according to
the exigencies of work. No leave shall be granted to a workman while on
suspension.
2. The workmen who desire to obtain leave of absence shall apply to the
Competent Authority and shall not avail of the same before it is actually
sanctioned.
3. Except in an emergency application for leave for three days or less should
be made at least twenty four hours previous to the time from which the
leave is required.
4. Applications for leave for more than three days should be made at least
seven days before the date from which the leave is required.
5. A workman shall furnish to the Competent Authority his leave address in
the leave application itself.
6. A workman who desires to apply for or extend his leave on medical
grounds, shall submit with his application a certificate from the Authorised
Medical Officer. On receipt of such application, the Competent Authority
shall inform the workman, in writing at the address given by him in his
application or previously intimated, whether the leave or extension of
leave has been sanctioned and if so, for what period or whether the leave
or extension of leave has been refused. The Competent Authority may at
his discretion refer the matter to any other Authorised Medical Officer for
advice and direct the workman to report before him for confirmation of the
medical certificate.
7. A workman who has been sanctioned leave or an extension of leave, on
medical grounds shall not be allowed to resume duty unless he produces a
fitness certificate from the Authorised Medical Officer.
8. If a workman, after proceeding on leave desires an extension thereof, he
shall make an application, in writing, to the Competent Authority before
expiry of leave originally granted and the Competent Authority shall on
receipt of such an application inform the workman in writing whether or
not the extension of leave applied for has been sanctioned and if so for
what period and on what conditions.
86

9. If any workman remains absent for a period of 8 days without intimation or

beyond the period of leave originally sanctioned or subsequently extended
he will be served with a registered notice by the Competent Authority on
his last known address calling upon him to resume duty by a stipulated
date which shall not be in any case before the expiry of 15 days from the
date of mailing this notice. If the workman concerned fails to resume duty
by the stipulated date the competent authority may terminate the service
by striking off the name of the employee concerned from the rolls of the
Company. In case the employee returns within 8 stipulated days from the
commencement of the absence or the expiry of leave originally granted or
subsequently extended as the case may be or within 15 days of the notice
period and explains to the satisfaction of the management the reasons for
his absence or his inability to return on the expiry of the leave as the case
may be he may be reinstated.
10.Number of times that earned leave may be taken by a workman during
any year shall not exceed three except under special circumstances with
the approval of the Competent Authority and/or when the leave is taken
on medical grounds duly supported by medical certificate of the
Authorised Medical Officer. Unauthorized absence will not ordinarily be
regularized by grant of any kind of leave.

WEEKLY HOLIDAY :
Every workman shall be granted a weekly off for a whole day on a specified day
of the week. The Competent Authority may require a workman to work on a
weekly holiday including Sunday. A workman who cannot be allowed a weekly
holiday on the specified day due to exigencies of work/service shall be granted a
compensatory holiday in lieu thereof and/or overtime as per law applicable.

PAID HOLIDAYS :
The Project/Plant shall grant nine paid holidays which include National Holidays
viz., Republic Day, Independence Day, Mahatma Gandhi Jayanthi and State
Holiday, for Andhra Pradesh Formation day in a year. The Competent Authority
may require a workman to work on a paid holiday. Subject to exigencies of
work/service, workman shall be allowed to avail of the paid holidays. The
workman who cannot be spared and is required to work on any of these holidays
will be granted either a compensatory holiday or be paid a days wages in lieu
thereof. The days observed as holidays shall be notified on the notice board.

TERMINATION OF EMPLOYMENT :
1. The services of any workman may be terminated on any reasonable cause
as listed below by giving one months notice in writing or wages in lieu
thereof after giving reasonable opportunity.
2. Insanity, physical infirmity, contagious or infectious disease of permanent
nature, continued ill-health, medical unfitness for employment with the
Company, as declared by the Authorised Medical Officer.
3. Conviction for a criminal offence in a court of law for culpable homicide.

87

4. If any declaration given or information of serious nature furnished by a

workman in connection with his appointment or during the course of his
service proves to be false, or if it is found that he/she has willfully
suppressed any material information or on receipt of adverse report on
verification of character and antecedents.
5. The services of Temporary workman, Probationer, Apprentice and Trainee
may be terminated at any time by the Management giving 14 days notice
or wages in lieu thereof wherever such termination is effected before the
expiry of the period of service specified in their appointment orders,
subject to the provisions of I.D.Act.
6. The services of Casual Workman may be terminated at any time by the
management without any notice or compensation, subject to the provision
of I.D.Act.

SPECIAL PROCEDURE FOR TERMINATION OF

EMPLOYMENT IN CERTAIN CASES :
Notwithstanding anything contained in the Standing Orders No.30, where a
penalty is to be imposed on an employee on the grounds of misconduct, which
had led to his conviction of criminal charge or where the Managing
Director/Director/Chief Executive is satisfied for reasons to be recorded in writing
that it is not expedient or in the interest of security to follow the procedure laid
down in the Standing Orders, he may consider the circumstances of the case and
pass orders thereon as he deems fit.

ACTS OF MISCONDUCT :
1. Without prejudice to the general meaning of the term misconduct any
action or omission violative of the contract between the Company and
Workman shall constitute a misconduct. To illustrate, the following
actions/omissions on the part of the workman shall amount to misconduct.
2. Using his position or using his influence directly or indirectly to secure
employment for himself and/or for any members of his family in any firm
or company having business with the Company or with any other firm
having business relations with the Company.
3. Making public or publishing by a workman any vital document, paper or
information which might have come into his possession in official capacity,
without prior permission of Competent Authority.
4. Giving evidence, except with permission, in connection with any enquiry
conducted by any person committee or authority and while giving
evidence, criticising the policy or any action of the Company, the Central
Government or of a State Government.
5. Disclosing during service any secret, cost of production of any or all of the
companys products, cost of equipment, plans, etc., information of
settlement of claims by the Company in or out of court, or any other
information of matters on trade or business secrets.

88

6. Carrying outside the Project/Plant any notes, books, drawings, sketches,

photographs, apparatus, documents or any other property belonging to
the Company or relating to the Companys business, affairs or operation,
unless permitted by the Competent Authority.
7. Asking for or accepting contribution to or otherwise associating with the
receiving of any fund without the permission of the Controlling Authority in
the Plant, Mines and Offices.Soliciting or accepting directly or indirectly or
permitting any member of his family to accept without previous
permission, any gift or reward or any such offer exceeding the value that
may be fixed by the management as per Government Directions from any
person or firm having dealings with the Company or any subordinate
workman. Acceptance or lavish or frequent hospitality from any individual
or firm having official dealing with him.
8. Carrying out or being concerned in any other business or holding of an
office with or without
9. remuneration while in the employment of the Company.
10.Taking part in the registration, promotion or management of a bank or
other company registered under the Companies Act, 1956 or any other law
for the time being in force, without prior permission.
11.Carrying on money lending as a business.
12.Contracting of marriage by a workman who has a spouse living, without
prior permission notwithstanding that such subsequent marriage is
permissible under the personal law for the time being applicable to
him/her.
13.Conviction in any court of law for the criminal offence involving moral
turpitude.
14.To stage, encourage or instigate forms of coercive action or Gherao on
any members of the managerial or other staff.
15.Failure to observe safety instructions and/or dress regulations or
interference with any safety device or equipment installed in the premises.
16.Interfering with machines or processes not connected with the work
allocated and/or required to be done as ordered by his superior.
17.Conduct within the premises which is likely to endanger the life or safety
of the employee or any other person.
18.Failure to report at once to the superior, any vital defect which a workman
may notice in any equipment connected with his work.
19.Manufacturing or attempting to manufacture unauthorized articles or
doing private or personal work within the premises.
20.Interference with the work of any other workman or any other person in a
manner inimical to the interests of the Company.

89

21.Failure to observe Companys regulations for the prevention of fire,

security, fire drill practices or refraining from doing or conducting fire drill
practices when required to do so.
22.Demanding offering or accepting bribes or any illegal gratification.
23.Acceptance or solicitation by workman or his family or relatives with the
knowledge of the workman of any money, favour or any other means of
reward for employment or consideration for employment in the Company.
24.Acceptance or solicitation by workman or his family or relatives with the
knowledge of the workman of any money, favour or any other reward
connected with purchase of material or service for Companys use or sale
of Companys product.
25.Theft, fraud or dishonesty in connection with the Companys business,
affairs or operation or property or of the property entrusted by the
Company.
26.Interference with attendance records or means of logging such records.
27.Willful disfigurement, forgery, falsification, destruction or alteration, theft
or removal of any records of the company.
28.Committing nuisance in the Company premises.
29.Gross or habitual negligence or neglect of work.
30.Willful damage to work in process or any other property of the Company.
31.Not keeping plant, machinery and equipment clean and tidy.
32.Insubordination or disobedience whether alone or in combination with
another or others to any lawful and reasonable orders of a superior.
33.Inciting others to take part or participating in an illegal strike.
34.Sudden stoppage of work or leaving work undone resulting in damage to
Companys plant or properties.
35.Willful slowing down of work, stopping of work or abetment or instigation
thereof.
36.Stoppage of work alone or in combination with other workman or workmen
in contravention of the provisions of the law for the time being in force or
the provisions of these Standing Orders.
37.Registering of attendance of another workman or abetting in the Act of
registering attendance of another workman.
38.Canvassing for political party membership or the collection of political
party dues, funds or

Contribution within the premises of the Company.

90

1. Riotous or disorderly behaviour or any act subversive of good behaviour or

discipline within the premises of the Company.
2. Organising or holding any meetings within the Project/Plant or in the
Companys premises without written permission of the management
except in the following two places :
1) Near Technical Training Institute Bus Terminal.
2) Township at a suitable open space.
3. Gambling of any kind within the premises of the company.
4. Drunkenness, intoxication or carrying or consuming alcoholic liquor or
narcotics within the premises of the Company.
5. Indecent behaviour, threatening, intimidating, coercing superiors or other
workmen, quarrelling or interfering with the work of other workmen,
assault or threat of assault, making false accusation, use of impolite or
insulting language against a superior or any other workman or any
Executive/Officer of the Company.
6. Leaving place of work without sufficient cause during working hours and/or
entering another department/division/section/office or shop or premises
otherwise than in the course of duty without permission of his superior.
7. Loitering, idling or wasting time during working hours or malingering or
being in the work place or premises after authorised hours of work without
permission of the superior.
8. Habitual late attendance and willful or habitual absence from duty.
9. Smoking in the premises where smoking is prohibited.
10.Transfer of identity badge and/or other means of identification to another
person.
11.Habitual failure to show identity badge as required.
12.Refusal to accept a charge sheet, order or other communication served by
the management.
13.Distributing or exhibiting in the premises, hand bills, pamphlets, posters or
causing to be displayed by means of signs or writing or other visible
representation, any matter.
14.Possession and/or use in the premises, of weapons, explosives,
inflammable materials, cameras, radios, transistors, tape-recorders,
loudspeakers, megaphones etc.
15.Making false or malicious statement, Public or otherwise against the
company or any of its Executive/Officer.
16.Sleeping while on duty.

91

17.Obtaining or attempting to obtain leave of absence by false statement

and/or pretences and/or abuse of any leave.
18.Surrounding or forcibly detaining or otherwise interfering with free
movement of the Companys Executive/Officer of other workman or
visitors inside the premises.
19.Refusal to accept order of transfer from one shift to another or one place
to another.
20.Refusal to submit to search by the Security Personnel or any other agency
to which security is entrusted by the management.
21.Entering or leaving except by an authorised gate, door or exit intended for
the purpose or scaling or breaking or damaging or otherwise tampering
with any door, window, wall or structure forming part of the Companys
property.
22.Violation of speed restrictions on vehicles imposed in the Companys
premises. Breach of the Companys health, security and/or safety
regulations in the Companys premises.
23.Writing anonymous or pseudonymous letters regarding the Companys
employees, business, affairs or operation.
24.Failure to attend to work after duty hours or on a weekly or other holidays,
when required to do so in writing.
25.Carrying unauthorised persons in Companys vehicle, transport and/or
equipment or allowing unauthorised persons to operate Companys
vehicle, transport and/or equipment.
26.Leaving ones place or places of work during or at the end of shift without
being properly relieved as set out in rules regarding shifts.
27.Any act which constitutes violation of any of these Standing Orders.
28.Misuse/subletting of Companys quarters or land.
29.Canvassing by a workman in support of the business of any insurance
agency, commission agency, etc., owned or managed by his wife or any
other member of his family.
30.Mismanagement of the affairs and/or Misappropriation of funds of Cooperative Societies /Associations for which the Company is financing or
extending any facility and in which the employee holds a responsible
position.
31.Dealing by a workman in the discharge of his duties with any matter or
any contract with any firm or company or any other person, if any member
of his family is employed in that firm or under that person, or if he or any
member of his family is interested in such matter or contract in any other
manner unless the workman had referred every such matter or contract to
his superiors and the matter or contract was disposed of according to the
instructions of the authority to whom the reference was made.

92

32.Owning wholly or in part or conducting or participating in the editing or

management of any newspaper or other periodical publications.
33.Contesting election to any elected office of the local bodies, legislative
bodies, etc., while in employment of the Company without permission.
34.Making any statement which has the effect of adverse criticism of any
policy or action of the Central or State Government or of the Company or
which is capable of embarrassing the relations between the Company and
Public.
35.Acceptance of any fee or any pecuniary advantage for any work done by
the workman for any public body or any private person without
permission.
36.Acquiring or disposing of any immovable property by lease, mortgage,
purchase, sale, gift or otherwise either in his own name or in the name of
any member of his family without prior permission.
37.Possession of pecuniary resources or property disproportionate to the
known sources of income by a workman or in his behalf by another person
which the workman cannot satisfactorily account for.
38.Failure to submit when called upon, within the stipulated period, a full and
complete statement of such movable or immovable property held or
acquired by him or any member of his family, as may be required by the
Management.
39.Taking recourse to any Court or to the press without prior permission for
the vindication of any official act which has been the subject matter of
adverse criticism or an attack of defamatory character.
40.Bringing or attempting to bring by a workman any political or other
outside influence to bear upon the management to further his interest in
respect of matter pertaining to his service under the Company.
41.Failure to report an occurrence of any accident involving personal injury in
the course of employment or the contracting of contagious or infectious
disease.
42.Failure to take proper care of the plant, machinery, equipment, tools,
gauges, jigs, fixtures, drawings, office records, office equipment, etc.,
entrusted to the workman.
43.Failure to notify the management of any change in residential address.
44.Refusal to vacate Companys housing and/or accommodation of any kind
when called upon to do so.
45.Making alterations, additions, modifications, removal of accessories, etc.,
in the Companys houses and/or accommodation of any kind allotted to
the workman, without the approval of Competent Authority.
46.Keeping cattle and animals of any kind in the Companys accommodation,
which may violate the

93

47.Companys sanitation, health, security and/or safety regulations.

48.Acts or omission which lower the quality of goods manufactured/service
rendered and/or reduce the production.
49.Abetment or attempt to commit any of the misconducts within these
Standing Orders.

PUNISHMENT FOR MISCONDUCT :

The following punishments may be imposed on any workman who is found guilty
of misconduct by the Disciplinary Authority.

MINOR PUNISHMENTS :
1. Censure.
2. Fine.
3. Suspension without pay for a period not exceeding four days.

MAJOR PUNISHMENTS :
1. Stoppage of increment.
2. Reduction to a lower grade or post or lower stage in the time scale; and
3. Removal from service;
4. Dismissal from the service of the Company.

EXPLANATION:
The following shall not constitute a punishment :
(i) Stoppage of increment of a workman on account of his failure to cross the
efficiency bar, if any or failure to pass the prescribed test or examination.
(ii) Non-promotion whether in officiating capacity or otherwise of a workman to
higher post for which he may be eligible but for which he is found unsuitable.
(iii) Reversion to a lower grade or post of a workman officiating in higher grade or
post on the ground that he is considered during or at the end of probation period
to be unsuitable for the higher grade or post.

Termination of service :
(1) of a workman appointed on probation during or at the end of the period of
probation in accordance with the terms of appointment.
(2) of a workman appointed in a temporary capacity on the expiry of the period
for which he was appointed or earlier in accordance with the terms of his
appointment.
(3) of a workman appointed under a contract or an agreement in accordance
with the terms of such contract/agreement.

94

(4) Of a workman on reduction of establishment or on retrenchment.

(5) in terms of the provisions of Standing Order No.25.
(6) in terms of the provisions of Standing Order No.26.
(7) on attaining the age of superannuation.
A. When an act of misconduct is alleged against a workman for which a
punishment as provided under Standing Orders 1, 2 and 3 is proposed to
be imposed, the workman shall be given an opportunity to show cause
before punishment is imposed.
B. No order imposing any of the punishments referred to in Standing Orders
28.1.4, 28.1.5, 28.1.6 and
C. shall be made except after holding an inquiry against the workman
concerned in respect of the alleged misconduct in the manner set forth in
Standing Order No.30. Where the management feels it advisable, a joint
enquiry involving more than one workman may be held. The inquiry,
wherever held, shall be conducted and recorded in English, Hindi or Telugu
whichever is preferred by the workman.

DISCIPLINARY AUTHORITY :
Any Executive/Officer to whom powers are delegated to take disciplinary action
against a workman shall be the disciplinary authority competent to initiate
disciplinary action and to impose punishment on a workman.

PROCEDURE FOR IMPOSING PUNISHMENT :

1. When a workman is charged with misconduct which may lead to the
imposition of any of the penalties mentioned in Standing Order 28.1, the
Disciplinary Authority shall frame definite charges on the basis of the
allegations against him. The charges together with a statement of
allegations on which they are based, shall be communicated in writing to
the workman who shall be required to submit a written statement of his
defence within such time as may be specified but not exceedin three days
by the Disciplinary Authority.
2. It shall not be necessary to hold an enquiry if punishment is to be imposed
in terms of Standing Orders 1, 2,3. In other cases, covered by Standing
Orders 4, 5, 6 and
3. Above on receipt of the written statement of the workman or if no such
statement is received within the time specified, an inquiry may be held by
the Disciplinary Authority itself or by an Executive/Officer of the Company
or a committee appointed by the Disciplinary Authority for the purpose. It
may not be necessary to hold an inquiry in respect of the charges
admitted by the workman in his written statement provided that the
workman affirms that the statement made by him is voluntary and not
prompted by anyone else.
4. The workmen may be allowed to take the assistance of any other
workman of the Project/Platn or an95
office bearer of the Trade Union who is

an employee of the Company of which he is a member to present the case

on his behalf.
5. The Disciplinary Authority shall consider the record of the inquiry, record
its conclusions on each charge and pass appropriate orders.
6. Copies of all relevant documents in connection with the enquiry, such as
enquiry proceedings, findings of the Enquiry Officer, etc., shall be supplied
by the management to the employee concerned on request.

SUSPENSION PENDING ENQUIRY AND SUBSISTENCE

ALLOWANCE :
1. Where a disciplinary proceeding against a workman is contemplated or is
pending or where criminal proceedings against him in respect of any
offence are under investigation or trial and the Disciplinary Authority is
satisfied that it is necessary or desirable to place the workman under
suspension, the workman may be suspended by order in writing with
effect from such date as may be specified in the order. A copy of the order
of suspension shall be supplied to the workman.
2. A workman who is placed under suspension under Standing Order 31.1
shall during the period of such suspension, be paid subsistence allowance
at the following rates, namely:
3. Where the inquiry contemplated or pending is departmental, the
subsistence allowance shall, for the first ninety days from the date of
suspension be equal to one-half only of the basic wages and dearness
allowance put together. If the departmental inquiry gets prolonged and the
workman continues to be under suspension for a period exceeding ninety
days, the subsistence allowance shall for such period be equal to
threefourths of such basic wages and dearness allowance put together.
4. Where the inquiry is by an outside agency or where criminal proceedings
against the workman are under investigation or trial, the subsistence
allowance shall, for the first one hundred and eighty days from the date of
suspension, be equal to only one-half of his basic wages and dearness
allowance put together. If such inquiry or criminal proceedings get
prolonged and the workman continues to be under suspension for a period
exceeding one hundred and eighty days, the subsistence allowance shall,
for such period, be equal to threefourths of such wages. Provided that
where inquiry or criminal proceedings is prolonged beyond a period of one
hundred and eighty days for reasons attributable to the workman, the
subsistence allowance shall, for the period exceeding one hundred and
eighty days be reduced to one-fourth of such wages.
5. If, on the conclusion of the inquiry or criminal proceedings, the workman
has been found guilty of the charges framed against him, the Disciplinary
Authority shall pass appropriate orders. Provided that when an order of
dismissal is passed, the workman shall be deemed to have been absent
from duty during the period of suspension and he shall not be entitled to
any remuneration but the subsistence allowance already paid to him shall
not be recovered. Provided also that where an order imposing censure,

96

fine, suspension, stoppage of increment or reduction to a lower grade or

post or lower stage in time scale is passed under Standing Order 1, the
workman shall be deemed to have been on duty during the period of
suspension and shall be entitled to the difference in wages, he would have
received had he not been placed under suspension, and the subsistence
allowance paid to him during the suspension period.
6. If, on the conclusion of the inquiry or criminal proceedings, the workman
has been found to be not guilty of any of the charges framed against him,
he shall be deemed to have been on duty during the period of suspension
and shall be entitled to the difference in wages, he would have received
had he not been placed under suspension, and the subsistence allowance
paid to him during the suspension period.
7. The payment of subsistence allowance under this Standing Order shall be
subject to the workman concerned not taking up any employment during
the period of suspension. A workman under suspension may be required to
report at least once every day for attendance at a specified office.

APPEAL AND APPELLATE AUTHORITY :

A workman on whom any of the punishment is imposed shall have the
right of appeal to the authority notified in this behalf. The appeal shall be
submitted within fifteen days of receipt of the order of the Disciplinary
Authority, and the Appellate Authority shall dispose of the appeal within
thirty days of the receipt of the appeal.
The Appellate Authorities shall be notified by the Company from time to
time.

REVIEW OF CASES AFTER APPEAL :

An authority higher than the Appellate Authority may review a case after appeal
at any time either on its own motion or on the application of the employee
concerned.

GRIEVANCE PROCEDURE :
All grievances of the workman shall be dealt with by the Grievance machinery
set up by the management.

TEMPORARY ASSIGNMENT :
A workman shall be bound, if and when required by the management, to go any
where in connection with Companys business, affairs or operation and discharge
such duties, as may be assigned to him by the management.

TRAINING :
A workman is liable to undergo such training for such period and undertake such
examinations as may be prescribed by the management from time to time.

TEST :
97

Every workman shall be required to pass oral and/or written tests and/or
practical and/or trade tests appropriate for the work and as may be prescribed
from time to time by the management.
All workmen, wherever required, shall at their own cost keep their required
licences /certificates/qualifications, etc., valid during the currency of their service
in the Company.

RESIGNATION :
Workmen who are not under a bond and who wish to leave the Companys
service must give the Company the same notice as the Company is
required to give them in terms of the appointment letter. The management
may, at its discretion, accept the resignation with immediate effect or from
any time before the expiry of the notice period.
If a workman leaves the service of the Company without the requisite
notice then without prejudice to any other action under his contract of
service, the Company may deduct from his unpaid wages a sum
equivalent to the period of notice which he is required to give.

SERVICE CERTIFICATE :
Every workman shall be entitled to a service certificate, specifying the nature of
work (designation) and the period of employment (indicating the days, months,
years), at the time of discharge, termination, retirement or resignation from
service.

MEDICAL AID IN CASE OF ACCIDENTS :

Where a workman meets with an accident in the course of or arising out of
his employment, the employer shall, at the employers expense, make
satisfactory arrangements for immediate and necessary medical aid to the
injured workman and shall arrange for his further treatment, if considered
necessary by the doctor attending on him, wherever the workman is
entitled for treatment and benefits under the Employees State Insurance
Act, 1948 or the Workmens Compensation Act, 1923, the employer shall
arrange for the treatment and compensation accordingly.

COMMUNICATION OF ADDRESS :
Every workman shall notify to the management in writing his address in full and
all changes thereof from time to time immediately after such change takes place.
The last address given shall be deemed to be his correct address for all
purposes.

COMMUNICATION TO WORKMEN :
1. The management will consider that a workman has been given proper
written notification concerning any communication by use of any of the
following methods;
2. By handing over the communication to him anywhere in the premises;

98

3. By dispatching the communication to him by registered post to his last

known address; and
4. By displaying the communication on the Notice Board.

SUPERANNUATION :
Age of retirement of a permanent workman in the regular establishment of the
Company shall be fifty eight years unless otherwise provided in his terms of
appointment. The retirement of a workman shall take effect from the afternoon
of the last day of the month in which the workman attains the age of
superannuation as per age record maintained by the Company.

LIABILITY OF EMPLOYER :
The Employer of the establishment shall personally be held responsible for the
proper and faithful observance of the Standing Orders.
A copy of the Certified Standing Orders shall be supplied free of cost in the first
instance on demand by the workman.
For the purpose of interpretation of these Standing Orders or other
communications from the Company, the English version shall be taken as final
and binding.
A copy of these orders in English, Hindi and Telugu shall be pasted on a notice
board maintained at or near the main entrance to the establishment and shall be
kept in a legible condition.

SAVINGS :
Nothing contained in these Standing Orders shall operate in derogation of any
law or to the prejudice of any right under written contract of service for the time
being in force.

DAILY ATTENDANCE RECORDING SYSTEM (DARS)

OBJECTIVES:

99

1. To provide a system for daily recording of attendance of employees.

2. To ensure fullest utilization of the existing manpower during duty hours.
3. To generate information on availability of manpower in department/shop on daily
basis.
4. To generate data on daily absenteeism for speedy remedial measures.
PROCEDURE:
1. The daily attendance of the employees will be recorded in two attendance sheets one
to record attendance at the beginning of the shift and the other to record attendance at
the end of the shift. The Proforma of the Daily Attendance sheets will be recorded in
the manner prescribed below:2. As soon as an employee reports for duty, he/she should sign the Daily Attendance
sheet (at the beginning of the shift) recording the time of reporting. The controlling
officer / Incharge will check the time of reporting of all employees and fill up the
summary column and sign the sheet with time.
3. The concerned HOD will make arrangement for collection of the Daily Attendance
Sheet (at the beginning of the shift) for feeding of the data into the computer / for
compilation as the case may be within half an hour after the shift begins/
4. In case an employee has come late and the attendance sheets have already been
collected, the controlling officer / I/c may in exigencies of the work, accept the
employee on duty subject to the employee making entry in late reporting sheet with
signature. The controlling officer will accordingly make necessary entries in the
shortwork column of the attendance sheet.
5. During duty hours, no employee shall leave the duty spot without the permission of
the controlling officer/ shift Incharge.
6. When an employee leaves the place of work during duty hours, the controlling officer
will record the period of absence in shortwork column. This does not apply to cases
where the employee leaves the place of work for official reasons with the knowledge
and permission of the controlling officer / shift Incharge.
7. At the end of the Shift, the employee will record the out time with signature in the
Daily Attendance Sheet (at the end of the shift). The Controlling Officer / Incharge
will fill up all the relevant columns marked in the attendance sheet to be filled by the
Controlling Officer / Incharge at the end of the shift.
8. In case an employee is absent, the controlling officer / Shift Incharge will reflect the
status of the concerned employee as off/Leave /UAB/ Others as the case may be.
9. In case an employee has signed at the time of reporting but has not signed at the end
of the shift hours, the Controlling Officer / Shift Incharge will mark a cross in the
column and indicate the hours of shortwork or shutout as the case may be in
shortwork / shutout Column.
100

10. The Controlling officer / Incharge will grant leave in the leave in the leave book and
will make necessary entry in the leave card and the attendance sheet. In case of
cancellation of the leave, the period for which the leave is cancelled will be reflected
in the attendance sheet with a mark of c for cancellation in the column provided.
11. At the end of the shift, the controlling officer / Incharge will fill up the summary
columns and sign the attendance sheet.
12. The controlling officer / Shift Incharge will deposit the filled in Daily Attendance
sheet (at the end of the shift) in the designated places for collection of the sheet.
13. The Daily Attendance Sheet maintained as above shall be the basis for preparing the
monthly attendance particulars of the employees to be sent to Finance Deptt. for
drawal of wages. Total time spent on private work / late coming, etc. during duty
hours in the wage period shall be indicated in the monthly attendance particulars for
deduction of proportionate wages. Similarly, number of days an employee is shut out/
treated as absent shall be reflected in the monthly attendance particulars for deduction
of wages.
14. Orders 1 to 10 of the Certified Standing Orders of Visakhapatnam Steel Plant are
relevant and may be referred to for guidance and strict compliance in respect of the
attendance of employees covered under the Certified Standing Orders.
15. CMD is competent to review, alter, modify and change the system as may be required
from time to time.

101

DATA ANALYSIS

&
INTERPRETATION

102

DATA ANALYSIS & INTERPRETATION OF OVER ALL

ANALYSIS
HYPOTHESIS
Keeping in view the vast achieving of production and targets to be fulfilled
by large number of employees in RINL (VSP).It is presumed that more or less
cordial industrial relations must be prevailing to continuously achieve.
OBJECTIVES:
1. Since VSP is a government sector origination having heavy production units,
there will be a streamed lined producer of IR management.
2. The vast work force indicates executive, non-executives who are educated
will influence the expected IR scenario.
3. since many of the jobs are offloaded taking the help of the contract laborer,
the IR scenario is also excepted to have multifold dimensions in the company
due to the presence of many contract laborer
4. In view well established welfare measures, satisfactory wages and other fridge
benefits, it is also expected that the wants and demands of the employees at
large may have a unique IR situations.
5. To study different mechanism adopted by the company in foreseeing the IR
eventually for maintaining balance to attain favorable IR situation.
METHOD:
1)BREAF BACK GROUND:- RINL(VSP) is a shore-based, highly technological steel
plant where in nearly 19000 regular employees and around 9000 contract
workers discharged their duties in the production activities round the clock. VSP
is constructed in an area of around 24000 archers with its main plant itself
having been constructed within 10000 archers. It is an integrated steel plant with
the perceivable hazardous nature of duties and three prominent accepts like
hazardous; hard and hot nature of duties are mostly seen all shop floors.
Employees are broadly divided into 2 groups that is executives and nonexecutives. There are well-established producers and conditions of employment
in the origination. Since prier to establishing this plant at Vizag, there are a few
other steel plants has government under takings functions in different parts of
the country.
2. SURVEY OF ADMINISTORATIO THROUGH QUESTIONAIRE:
Keeping in view in the vast achieving and also different nature of jobs performed,
it is felt necessary to fallow a few of the standardized procedure to have a
scientific study. It is desired to have a random access sampling method by
collecting samples of response and information from various pockets of sources.
This is besides adopting interviewer method, interaction, observation etc...

103

A sample questioner has been prepared to have the

desired response from the subjects which was administered and evaluated for
appropriated preparation of questioner. Taking into consideration of all such
inputs a questioner has been standardized into 22 statements with a 5 scale
response sheet.
The subjects will have 2 extreme response options and an option if
they have no information, it is also ensured to have the responses of different
variables and the variables like gender, designation, number of years of services
etc have been designed into the questioner. Beside to have appropriated
response for evaluation, the statements also included the negative and positive
including for inclination appropriate information.
ANALYSIS:
Each questioner was administer to the subject by physically presenting it with a
request to give their immediate responses to each statement in one of the 5
options columns, in every case it was ensured that subjects were kept desired
and truthful responses from the subjects.

104

1) IR management machinery is very important in any large scale production industry like
VSP.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 162
75
5
1
0
243
RESPONDENTS
PERCENTAGES

66.68%

30.86%

2.05%

0.41%

0%

100%

INTERPRETATION:
From the study and the survey it is clearly says that more than 97% of the
subjects have agreed that IR management machinery is very important in large scale industry
like VSP.

105

2) The dispute settlement procedure (collective bargaining) followed by the management in

VSP is able to resolve Industrial disputes satisfactorily.
a) Strongly agree b) agree c) cannot say d) disagree e) strongly disagree
OPTIONS

STRONGL
Y AGREE

NO
OF 23
RESPONDENT
S
PERCENTAGE 9.46%
S

AGREE

CANNOT
SAY

DISAGRE
E

TOTAL

15

STRONGL
Y
DISAGRE
E
5

160

40

65.85%

16.17%

6.17%

2.05%

100%

243

INTERPRETATION:
From the study and survey it is clearly says that around 75% approx.. Agree that
dispute settlement in VSP is satisfactory. However around 16% could not says it.
Approximately 9% of the respondents says that dispute settlement procedure is satisfactory in
their view.

3) The IR section and other Management machineries in VSP have been taking prompt action
in solving grievances of employees.
106

a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 15
135
49
34
10
243
RESPONDENTS
PERCENTAGES 6.17%
55.56% 20.16%
13.99
4.12%
100%

INTERPRETATION:
From the study and survey it is clearly says that around 62% of the respondents
are agreed that IR section and other management machinery in VSP are prompt in solving
grievances of employees. Whereas 20% of the respondents that they cannot say about the role
of machineries in VSP involved in grievance solving. Around 18% of the subjects are not
agreed about the grievance redressal are not prompt by the machineries in VSP.

4) The participative committees help in maintaining harmonious relationship between

employees and the Management
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE 107

CANNOT DISAGREE STRONGLY TOTAL

AGREE
NO
OF 24
RESPONDENTS
PERCENTAGES 9.87%

164

SAY
38

67.48%

15.65%

14

DISAGREE
3

243

5.77%

1.23%

100%

INTERPRETATION:
From the study and survey it is clearly says that around 77% of the
people are accepted the fact that employees participation with management will reduce IR
related issues. However 15% of the subjects that they cannot say about the relations with
employees participation with management and IR issues. The remaining are not accepted
about the employees participation with management is not related to IR issues.

5) One Union in one Industry is healthier for the promotion of Industrial relations.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

108

AGREE
NO
OF 23
RESPONDENTS
PERCENTAGES 9.46%

51

SAY
48

20.98%

19.77%

97

DISAGREE
24

243

39.92%

9.87%

100%

INTERPRETATION:
From the study and survey it is clearly says that around 50% of the
subjects are not accepting one union in the industry is healthier. Approximately 30% of the
subjects accepting the monopoly of union in VSP. Remaining cannot say about the one union
in the industry is healthier or not for the promotion of industrial relations.

6) The incentive schemes, awards, rewards introduced in VSP are additional welfare
measures to the employees to motivate them for more efficient discharge of duties.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS
NO

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
OF 72
150
8109
6
7
243

RESPONDENT
S
PERCENTAGES

29.63%

61.74%

3.29%

2.46%

2.88%

100%

INTERPRETATION:
From the study and survey it is clearly says that more than 90% of the subjects
says facilities that are providing to the employees are more enough to motivate the employees
for efficient duties. Around 5% of the subjects says facilities that are providing to the
employees are not sufficient to motivate the employees for efficient duties.

7) Political interference in the activities of Trade Unions will be adversely effecting the
smooth relationship between the trade Unions and the Management
OPTIONS

STRONGL
Y AGREE

NO
OF 57
RESPONDENT
S
PERCENTAGE 23.45%

AGRE
E

CANNO
T SAY

DISAGRE
E

TOTA
L

16

STRONGL
Y
DISAGREE
6

125

39

51.44%

16.07%
110

6.58%

2.46%

100%

243

S
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

INTERPRETATION:
From the study and survey it is clearly says that more than 75% of the
subjects agreeing that political interference will have any impact on IR scenario. 16% of the
respondents cannot say about the political interference on IR scenario. Remaining of the
respondents are not agreed with this.

8) When compared to other organizations, in VSP the Trade Unions have got a little role in
achieving demands, since management itself extends many benefits.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 8
95
58
75
7
243
RESPONDENTS
PERCENTAGES 3.29%
39.09% 23.83%
30.88%
2.88%
100
111

INTERPRETATION:
From the study and survey it is clearly says that more than
43% of the respondents felt that the Trade Unions have got a little role in
achieving demands, since management itself extends many benefits. Around
34% are not agreeing the statement whereas around 23% could not respond on
it.

9) Workers extend full support to the calls of Trade Unions on all occasions.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 20
88
67
62
6
243
RESPONDENTS
PERCENTAGES 8.23%
36.21% 27.56%
25.54%
2.46%
100%
112

INTERPRETATION:
From the study and survey it is clearly says that more than 45% of
respondents felt that workers respond to the trade unions. 27% of people
cannot say about the statement. And approxmetely 27% disagreed.

10) Trade Unions must acquire much more knowledge and information to sit across to discuss
issues with the Management.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS
NO
RESPONDENTS
PERCENTAGES

STRONGLY
AGREE
52

AGREE

DISAGREE

142

CANNOT
SAY
29

21.39%

58.43%

11.95%

113

TOTAL

20

STRONGLY
DISAGREE
0

8.23%

0%

100%

243

INTERPRETATION:
From the study and survey it is clearly says that more
than 80% of the subjects accepted with the statement. Whereas 12% they could
not say anything about it.

114

11) There should be more opportunities for the Trade Unions to associate in decision making
at different stages to improve all round performance of VSP.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 27
117
62
38
6
100
RESPONDENTS
PERCENTAGES 11.11%
48.14% 19.36%
17.69%
3.7%
100%

INTERPRETATION:

115

From the study and survey it is clearly says that more than 60% of the
respondents are accepted the statement. It is interesting to say that around 20%
have no knowledge about the statement. And around 20% of the people has
disagreed with the statement. 12) Employees' satisfaction is the key as a motivational

factor for higher productivity and performance.

a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 121
112
4
6
0
243
RESPONDENTS
PERCENTAGES 49.79%
46.09% 1.66%
2.46%
0%
100%

INTERPRETATION:

116

From the study and survey it is clearly says that more than 97% of the
respondents are agreed with satisfaction of the employees play a key role as a
motivational factor for higher productivity. 13) The present grievance redressed system

may not be sufficient to resolve the individual grievances of employees.

a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 20
117
62
38
6
243
RESPONDENTS
PERCENTAGES 8.23%
48.16% 25.51%
15.64%
2.46%
100%

INTERPRETATION:
From the study and survey it is clearly says that more than 56% of the subjects agreed
that the redressal procedure is not sufficient to resolve grievances of employees. It is interesting to
say 25% of them are not has no knowledge about whether the grievances redressal system is sufficient
or not. The vote for the grievances redressal procedure is sufficient is said by more than 19%.

117

14) The Management is always pro-active in resolving the IR issues with cordial relationship
with the Unions.
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 17
128
49
40
9
243
RESPONDENTS
PERCENTAGES 6.99%
52.67% 20.16%
16.48%
3.7%
100%
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

INTERPRETATION:
From the study and survey it is clearly says that more than 60% of the samples proved
that management is always productive in resolving IR issues. Around 21% that they could not say
about the statement. 19% more or less does not agree the statement.

118

15) Contract Lab our issues in VSP are one of the important influencing situations on IR
scenarios.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 32
159
29
18
5
243
RESPONDENTS
PERCENTAGES 13.16%
65.43% 11.93%
7.4%
2.08%
100%

INTERPRETATION:
From the study and survey it is clearly says that more than The subjects are well
aware of the influence of contract laborer on IR scenario. Since 79% has accepted. However 12% are
could not say about the contract laborer is one of the influencing factor on Ir situation or not.
Remaining disagree with the statement.

119

16) The disciplinary procedure and its implementation

satisfactory.

by the Management are very

OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 13
117
51
49
13
243
RESPONDENTS
PERCENTAGES 5.36%
48.16% 20.98%
20.16%
5.34%
100%
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

INTERPRETATION:
From the study and survey it is clearly says that more than The disciplinary procdure
in VSP well satisfied by 55% of the respondence knowledge by survey. It is intrusting to say 25% are
not agreed with the statement.

120

17) The procedure of Recognition of Trade Union supports the Management in maintaining
IR situations under control.
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

DISAGRE STRONGL
E
Y
DISAGRE
E
21
1

NO
OF 14
160
47
RESPONDENT
S
PERCENTAGE 5.76%
65.84%
19.33%
8.66%
S
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

0.41%

TOTAL

243
100%

INTERPRETATION:
From the study and survey it is clearly says that more than More than 70% has
accepted the contract laborer is one of the influenced factors in IR situations. Around 20% of the
subject did not known whether the subjects recognition has influence on IF related matters

121

18) VSP Management maintains very good rapport and relations with the concerned agencies
like Lab our Authorities, Govt. agencies etc., for their help in matters of IR settlements.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 39
181
21
1
1
243
RESPONDENTS
PERCENTAGES 16.06%
74.48% 8.64%
.041%
0.41%
100%

INTERPRETATION:
From the study and survey it is clearly says that more than More than 90% has
preserved that VSP management maintence is responsible rapport in maintaining relations from IR
point of view.

122

19) Compared to the all round activities in VSP and the conditions, the IR situation in VSP is
more or less sound.
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 23
152
51
14
3
243
RESPONDENTS
PERCENTAGES 9.48%
62.55% 20.98%
5.76%
1.23%
100%
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

INTERPRETATION:

123

From the study and survey it is clearly says that more than The IR atmosphere in VSP
are sound is ageed by 72% of the subjects. Around 20% they could not say about statement 20)

Employees repose confidence and trust on the Leaders of different Trade Unions with respect
to up keep of their interests.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 12
106
96
17
12
243
RESPONDENTS
PERCENTAGES 4.93%
43.65% 39.5%
6.99%
4.93%
100%

INTERPRETATION:
From the study and survey it is clearly says that more than It is mentioning that 40%
around subjects could not respond whether the employees ropole the confidence and trust of the leader
of the trade unions. More or less 49% have agreed or accepted the statement.

124

21) The organizational culture and nature of employees in VSP indicates that despite
differences and odd situations, they strive their best towards the targeted production etc.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 27
168
27
20
1
243
RESPONDENTS
PERCENTAGES 11.11%
69.13% 11.11%
8.24%
0.41%
100%

INTERPRETATION:
From the study and survey it is clearly says that more than More than 80% has agreed
with the organational culture will have a telling fact on IR atmosphere.

125

22) In view of well established communication system, meetings and other methods,
Management is able to resolve issue arising out of Trade Unions and such groups.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY AGREE CANNOT DISAGREE STRONGLY TOTAL

AGREE
SAY
DISAGREE
NO
OF 17
150
48
26
2
243
RESPONDENTS
PERCENTAGES 6.99%
61.72% 19.78%
10.69%
0.82%
100%

INTERPRETATION:

126

From the study and survey it is clearly says that more than From the respondents 68%
has agreed with system and the other methods of management are able to resolve IR. Around 20% of
them cannot say about the statement

DATA ANALYSIS
&
INTERPRETATION BETWEEN
EXECUTIVES AND NON-EXECUTIVES

127

1) IR management machinery is very important in any large scale production industry like
VSP.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
1
0

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

150

68

12

20

60%

35%

5%

0%

0%

100%

67.28%

30.49%

1.79%

0.44%

0%

100%

128

223

INTERPRETATION:
Above 90% of both the categories of respondents has expressed that IR machinery is
needed for any origination.

3) The IR section and other Management machineries in VSP have been taking prompt action
in solving grievances of employees.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
2
1

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

13

15

122

45

32

223

0%

65%

20%

10%

5%

100%

6.72%

54.7%

20.17%

14.34%

4.07%

100%

129

20

INTERPRETATION:
More than 65% of the respondents have felt that IR sections and other machineries are
prompt in VSP. Whereas 20% of both the categories of respondents cannot say about the
statement.

130

4) The participative committees help in maintaining harmonious relationship between

employees and the Management
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
0
0

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

15

24

149

133

14

223

0%

75%

25%

0%

0%

100%

10.76%

66.81%

14.79%

6.28%

1.36%

100%

131

20

INTERPRETATION:
From the above graph it is clear that 75% of both the categories are agreed with the
statement. 25% Non-executives and15% of executives cannot say about the statement.

7) Political interference in the activities of Trade Unions will be adversely effecting the
smooth relationship between the trade Unions and the Management.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
1
2

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

10

54

115

35

15

223

15%

50%

20%

5%

10%

100%

24.21%

51.56%

15.69%

6.75%

1.79%

100%

132

20

INTERPRETATION:
65% of both the categories agreed to the statement .whereas 20% of non-executives cannot
say about the statement.

10) Trade Unions must acquire much more knowledge and information to sit across to discuss
issues with the Management.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
3
0

NO
OF
RESPONDEN
TS OF NONEXECUTIVES
NO
OF
RESPONDEN
TS
OF
EXECUTIVES
PERCENTAG
ES OF NONEXECUTIVES
PERCENTAG
ES
OF
EXECUTIVES

10

49

132

25

17

223

15%

50%

20%

15%

0%

100%

21.97%

59.19%

11.22%

7.62%

0%

100%

133

20

NTERPRETATION:
80% of executives and 65% of non-executives has accepted to the statement.

13) The present grievance redressed system may not be sufficient to resolve the individual
grievances of employees.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
0
0

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

17

108

54

38

223

15%

45%

40%

0%

0%

100%

7.62%

48.43%

24.22%

17.04%

2.69%

100%

134

20

INTERPRETATION:
More or less 60% of both the cateogeries of respondents agreed the statement.

15) Contract Lab our issues in VSP are one of the important influencing situations on IR
scenarios.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
2
2

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

30

150

24

16

223

10%

45%

25%

10%

10%

100%

13.47%

67.26%

10.76%

7.17%

1.34%

100%

135

20

INTERPRETATION:
55% of non-executives and 80% of executives agreed to the statement.

17) The procedure of Recognition of Trade Union supports the Management in maintaining
IR situations under control.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
1
1

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

13

13

147

43

20

223

5%

65%

20%

5%

5%

100%

5.84%

65.92%

19.28%

8.96%

0%

100%

136

20

INTERPRETATION:
It is interesting to say that 70% of both the categories agreed to this statement,

19) Compared to the all round activities in VSP and the conditions, the IR situation in VSP is
more or less sound.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
2
1

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

22

144

43

12

223

5%

40%

40%

10%

5%

100%

9.86%

64.59%

19.28%

5.38%

0.89%

100%

137

20

INTERPRETATION:
45% of non-executives and 75% of executives agreed to this statement.

22) In view of well established communication system, meetings and other methods,
Management is able to resolve issue arising out of Trade Unions and such groups.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
1
0

NO
OF
RESPONDENT
S OF NONEXECUTIVES
NO
OF
RESPONDENT
S
OF
EXECUTIVES
PERCENTAGE
S OF NONEXECUTIVES
PERCENTAGE
S
OF
EXECUTIVES

11

16

139

41

25

223

5%

55%

35%

5%

0%

100%

7.17%

62.33%

18.38%

11.23%

0.89%

100%

138

20

INTERPRETATION:
60% of non-executives and 70% of executives agreed to this statement.

139

DATA ANALYSIS
&
INTERPRETATION BASED ON
NO YEARS OF EXPERIENCE

140

1) IR management machinery is very important in any large scale production industry like
VSP.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
0
0

NO
OF
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE
S OF ABOVE
10
YEARS
EXPERIENCE

21

15

141

60

206

56.76%

40.54%

2.7%

0%

0%

100%

68.44%

29.12%

1.96%

0.48%

0%

100%

141

37

INTERPRETATION:
From the samples it is been declared that more or less 97% of respondence of both the
categories are agreed that IR machinery is needed in large scale production industry.

142

3) The IR section and other Management machineries in VSP have been taking prompt action
in solving grievances of employees.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
6
0

NO
OF
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE
S OF ABOVE
10
YEARS
EXPERIENCE

22

14

113

41

28

10

206

2.7%

59.45%

21.64%

16.21%

0%

100%

6.79%

54.85%

19.92%

13.59%

4.85%

100%

143

37

INTERPRETATION:
62% of the respondence of both the categories eventually said that IR and other machinery in
VSP have a prompt action in solving grievance. Approximately 20% of both the experienced
people cant say about the statement. Similarly 20% are disagreed with it.

144

4) The participative committees help in maintaining harmonious relationship between

employees and the Management
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
2
0

NO
OF
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE
S OF ABOVE
10
YEARS
EXPERIENCE

30

24

134

33

12

206

0%

81.08%

13.52%

5.4%

0%

100%

11.65%

65.05%

16.02%

5.83%

1.45%

100%

145

37

INTERPRETATION:
From the above graph it is clear those 81% employees with below10 years experienced and
78% of employees above 10 years experienced. 14% of employees with below 10 years
experienced and 17% of employees with above 10 years experienced respondence cannot say
anything.

146

7) Political interference in the activities of Trade Unions will be adversely effecting the
smooth relationship between the trade Unions and the Management.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
5
2

NO
OF
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE
S OF ABOVE
10
YEARS
EXPERIENCE

19

50

106

35

11

206

18.93%

51.35%

10.81%

13.51%

5.4%

100%

24.27%

51.45%

16.99%

5.35%

1.94%

100%

147

37

INTERPRETATION:
Comparing more than 5% of employees are with above 10 years experienced respondence
accepted the statement. 195 of employees with below 10 years experienced respondence and
67% of experienced respondence disagreed with the statement.

148

10) Trade Unions must acquire much more knowledge and information to sit across to discuss
issues with the Management.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
1
0

NO
OF
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE
S OF ABOVE
10
YEARS
EXPERIENCE

21

44

121

22

19

206

21.64%

56.75%

18.91%

2.7%

0%

100%

21.35%

58.74%

10.67%

9.24%

0%

100%

149

37

INTERPRETATION:
From the above graph it is clear that 80% of both the categories agreed with the statement.

150

13) The present grievance redressed system may not be sufficient to resolve the individual
grievances of employees.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

16

DISAGRE STRONGL
E
Y
DISAGRE
E
2
0

NO
OF
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE
S OF ABOVE
10
YEARS
EXPERIENCE

15

16

102

46

36

206

10.82%

40.54%

43.24%

5.4%

0%

100%

7.76%

49.51%

22.33%

17.49%

2.91%

100%

151

37

INTERPRETATION:
Comparatively more than 7% of employees above 10 years experienced respondence agreed
that the redressal procedure is not sufficient to resolve the grievances of employees. 23% of
employees with above 10 years experienced respondence and 44% of employees with below
10 years experienced employees have no knowledge to agree or disagree the statement.

152

15) Contract Lab our issues in VSP are one of the important influencing situations on IR
scenarios.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

AGREE

CANNOT
SAY

TOTAL

DISAGRE STRONGL
E
Y
DISAGRE
E
4
1

NO
OF
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE
S OF ABOVE
10
YEARS
EXPERIENCE

21

26

138

24

14

206

16.21%

56.75%

13.52%

10.82%

2.7%

100%

12.62%

66.99%

11.65%

6.79%

1.95%

100%

153

37

INTERPRETATION:
From the above graph the variables says that 73% of respondence with below 10 years
experience and 56% of respondence with above 10 years experienced employees agreed that
the contract laborer issues influences on IR scenarios.

17) The procedure of Recognition of Trade Union supports the Management in maintaining
IR situations under control.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

NO
OF 1
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF 13
RESPONDENT

AGREE

CANNOT
SAY

TOTAL

11

DISAGRE STRONGL
E
Y
DISAGRE
E
5
1

19

141

36

16

206

154

37

S ABOVE 10
YEARS
EXPERIENCE
PERCENTAGE 2.72%
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE 6.31%
S OF ABOVE
10
YEARS
EXPERIENCE

51.35%

29.72%

13.51%

2.7%

100%

68.44%

17.47%

7.78%

0%

100%

155

INTERPRETATION:
Approximately 53% of respondence with below 10 years experienced and 75% of the
respondence with above 10 years experienced employees agreed to the statement. 30% of
respondence with below 10 years experienced and 18% of the respondence with above 10
years experienced employees cannot say anything about the statement

19) Compared to the all round activities in VSP and the conditions, the IR situation in VSP is
more or less sound.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree
OPTIONS

STRONGLY
AGREE

NO
OF 1
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF 22
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE

AGREE

CANNOT
SAY

TOTAL

10

DISAGRE STRONGL
E
Y
DISAGRE
E
5
1

20

132

41

206

156

37

PERCENTAGE 2.7%
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE 10.67%
S OF ABOVE
10
YEARS
EXPERIENCE

54.05%

27.02%

13.53%

2.7%

100%

64.07%

19.9%

4.39%

0.97%

100%

INTERPRETATION:
More or less 56% of respondence with below 10 years experienced employees and 75% of
above 10 years experienced employees accepted
the statement. Whereas 27% of below 10
157

years experienced employees and 20% of above 10 years experienced employees could not
say anything about the statement.

22) In view of well established communication system, meetings and other methods,
Management is able to resolve issue arising out of Trade Unions and such groups.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) Strongly disagree

OPTIONS

STRONGLY
AGREE

NO
OF 3
RESPONDENT
S BELOW 10
YEARS
EXPERIENCE
NO
OF 14
RESPONDENT
S ABOVE 10
YEARS
EXPERIENCE

AGREE

CANNOT
SAY

TOTAL

10

DISAGRE STRONGL
E
Y
DISAGRE
E
2
1

21

129

38

24

206

158

37

PERCENTAGE 8.1%
S OF BELOW
10
YEARS
EXPERIENCE
PERCENTAGE 6.79%
S OF ABOVE
10
YEARS
EXPERIENCE

56.75%

27.07%

5.4%

2.7%

100%

62.62%

18.64%

11.65%

0.84%

100%

INTERPRETATION:
Nearly 64% of below 10 years experienced employees and 68% of above 10 years
experienced employees accepted or agreed it. 27% of below 10 years experienced employees
and 18% of above 10 years experienced employees cannot say about the statement

159

CHAPTER-VI
SUMMARY
FINDINGS
CONCLUSION
SUGGESTIONS

160

SUMMARY
The overall Industrial Relations scenario in RINL / VSP is peaceful,
cordial and healthy.

A host of proactive IR measures which inter-

alia include Confidence Building Measures (C B Ms) between Union

Management, Extensive communication, continuous interaction with
unions and partnership in Management in various participative
forums have helped in developing a congenial IR climate propitious
for high production and productivity.

With the dedication and

commitment of VSP collective, the organization has surmounted all

odds and achieved best ever records by crossing its rated capacities
continuous efforts to improve the employees morale have resulted
in improving the technological and operational discipline which
ultimately helped in heightening the motivation of the employees.
It is noticed that since inception Visakhapatnam Steel Plant has
signed successive Wage Settlements with the Recognized Union.
The notable features of the implementation are productivity and
production.

Apart from this a number of settlements on various

issues like Promotions, incentives and welfare measures etc., have

been reached with the union which have helped enhancing the
morale and motivation of the employees.
feature

in

Visakhapatnam

Steel

Plant

is

The most important

the

spirit

of

joint

consultation, which is being persuaded in all matters of work related

issues.
One of the most important factors is the productive work culture,
which is being considered as of crucial importance in
Visakhapatnam steel plant. As such several initiatives have been
taken to adopt a multi-skill and multi-trade pattern of working with
emphasis on flexibility in job deployment thus ensured the optimum
utilization of its human resources. To augment the above,
Visakhapatnam Steel Plant has bagged runners-up award in the year
1994 in recognition of excellence in Management, which has
facilitated harmonious industrial relations in the organization.
Visakhapatnam Steel Plant also bagged the best Management
award for the year 2000-01 from the State government of Andhra
161

Pradesh for outstanding contribution in maintenance of industrial

relations, labour welfare and productivity

162

FINDINGS
The subjects who have been requested to give their response to the statement in the
questioner were able to understand the views expressed in the statements and also 5 scale
options provided for this purpose. The observation and finding out of the analysis made as
above are as under.
1) Employees are more or less aware of the concept IR, the influence and impact of IR
scenarios
2) The cause and remedies in the event of IR situation are also known to the employees.
3) However, in specific instances for example the influencing factors and other such
issues which may have bearing over the IR scenarios are not totally known to
considerable no of employees.
4) Employees are also aware about the machinery, in dealing with the IR situations.
5) Many employees have shown their awareness with respect to the factors like know
ledged and experience, welfare measures and fridge benefits and other such schemes
will have effect over the IR situations in the company.
6) With a small exemptions may have the know ledge of consequences with respective
employing contract laborer in IR related matters with respective to IR scenario in the
organization in terms to qualify in comparison to other industries many have shown
their ignorance. This shows that there is no possibility of information from other
organizations to the employees of the company. Employees are also indicated the
knowledge about the functioning of trade unions and their role in the IR scenario.

163

CONCLUSION

Beside administrating the questioner and tabulating the responses, efforts

have been made to interact with people with employees, senior
executives, trade unions leaders, interest groups. All the above methods
have given arises to adequate information and knowledge about the IR
situation in VSP its basic nature, influencing factors, control methods etc.
Finally the following conclusions have been drawn out.
The IR in VSP is more or less sound as can be also constructed because of
fulfilling the largest and tasks leading to achieving projected targets of
production.
Both management and unions have been functioning with responsibility
due to which the IR situations are kept under control. Employees are
aware of different sections responsibilities for managing the IR situations.

164

1. In view of the above having adhered to the objectives of the survey and study
the IR situations at different times as on records of the company will reveal
that the IR in the company right from the begning is under efficient planning
to take care of the mammoth work force as such the hypothesis based on
which the entire survey and research was made has been proved to be
correct

SUGGESTIONS

1. It is better that Trade Unions should not have affiliation with Political
parties.
2. There should be a Grievance Handling Committee each at shop floor
level and at every departmental level. It should review its functions at
regular intervals.
3. There should be a proper and adequate two-way communication
between management and workers to increase the morale of both
executives and workers and ensure peaceful industrial relations and
thereby achieve better production & productivity.
4. Leaders development training programmers should be conducted to
develop the leadership skills.
5. Trade unions should work with more responsibility towards overall
organisationsl growth than demanding only benefits for workmen.
6. Implementation of all industial acts should be followed always in all
cases and should be imparted.
7. Multi union participation must be banned and only recognized unions
should be honoured for their tenure.
8. Promotion policy of the non-executives must be improved.
9. Industrial tours and HRD programs to be conducted for the employees.

165

BIBLIOGRAPHY
Websites:
www.vizagsteel.com
www.industrialrelation.com
www.ask.com
www.google.com
BOOKS:
o p.subbarao _- essentials of human resoures and industrial
relations
o MANAGEMENT OF HUMAN RESOURCES

----

L.M.

PRASAD
o HUMAN RESOURCE MANAGEMENT
RAO

----

o INDUSTRIAL RELATIONS
Dr.P.SUBBA RAO

----

Dr.P.SUBBA

o UNION MANAGEMENT RELATIONS AND GLOBALIGATION -----C.S.VENKATA RATNAM

166

QUESTIONNAIRE ON INDUSTRIAL RELATIONS IN VSP

Please find here under a few
questions/statements aimed for study and survey for academic purpose. You
are requested to please indicate your immediate response in one of the columns
against each question which in your opinion is most appropriate.
Name: _____________________
Designation: ________________
Department : ________________
No.of Yrs. Of experience: _________

Question/statement

Strongl
y

S.N
o.

Agre
e

Canno
t say

Disagr
ee

Strongly
disagree

agree

1.

IR management machinery is very

important in any large scale production
industry like VSP.

2.

The dispute settlement procedure

(collective bargaining) followed by the
management in VSP is able to resolve
Industrial disputes satisfactorily.

The IR section and other Management

machineries in VSP have been taking
prompt action in solving grievances of
employees.

The participative committees help in

maintaining harmonious relationship
between
employees
and
the
Management.

One Union in one Industry is healthier

for
the
promotion
of
Industrial
relations.

The
incentive
schemes,
awards,
rewards introduced in VSP
are
additional welfare measures to the
employees to motivate them for more
efficient discharge of duties.

Political interference in the activities of

Trade Unions
will be adversely
effecting
the smooth relationship
between the trade Unions and the

167

Management.
8

When
compared
to
other
organisations, in VSP the Trade Unions
have got a little role in achieving
demands, since management itself
extends many benefits.

Workers extend full support to the calls

of Trade Unions on all occasions.

10

Trade Unions must acquire much more

knowledge and information
to sit
across to discuss issues with the
Management.

11

There should be more opportunities for

the Trade Unions to associate in
decision making at different stages to
improve all round performance of VSP

12

Employees' satisfaction is the key as a

motivational
factor
for
higher
productivity and performance.

13

The
present
grievance
redressal
system may not be sufficient to resolve
the
individual
grievances
of
employees.

14

The Management is always pro-active

in resolving the IR issues with cordial
relationship with the Unions.

15

Contract Labour issues in VSP are one

of the important influencing situations
on IR scenarios.

16

The disciplinary procedure and its

implementation by the Management
are very satisfactory.

17

The procedure of Recognition of Trade

Union supports the Management in
maintaining IR situations under control.

18

VSP Management maintains very good

rapport
and
relations
with
the
concerned
agencies
like
Labour
Authorities, Govt. agencies etc., for
their help in matters of IR settlements.

19

Compared to the allround activities in

VSP and the conditions, the IR situation

168

in VSP is more or less sound.

20.

Employees repose confidence and trust

on the Leaders of different Trade
Unions with respect to up keep of their
interests

21

The organizational culture and nature

of employees in VSP indicates that
despite differences and odd situations,
they strive their best towards the
targeted production etc.

22.

In
view
of
well
established
communication system, meetings and
other methods, Management is able to
resolve issue arising out of
Trade
Unions and such groups.

169

170