PRESENTATON ON

LABOUR DISPUTE

TOPIC: PHILIPS INDIA LABOUR

PROBLEMS

SUBMITTED BY- TASNIM

AKHTAR
ROLL NO- 52
B.COM 6TH SEM (HRM)
 PHILIPS INDIA LABOUR PROBLEMS
AT SALT LAKE

Philips India Ltd (PIL) was incorporated on 31st

JAN 1930 at Kolkata. It was a private company
under the name Philips Electricals Company
(India) Ltd. On 31st OCT 1957 it was converted
into a public company. Again on 31st Oct 1967 it
was renamed as Philips India Ltd. The company
manufactures and sells radio receivers,
components, amplifiers, electrical lamps, lighting
fittings and accessories, medical apparatus etc.
The wake of the booming consumer goods
market in 1992, PIL decided to modernize its Salt
Lake Factory located in Kolkata. The plants
output was to increase from a mere 40000 t0
2.78 lakh CTVs in three years. The labour
problems of the Philips India Ltds Salt Lake
Factory Kolkata began in 1998. At that time two
unions were active namely PIL Philips Employee
Union (PEU) and Pieco Workers Union (PWU). The
differences with workers led to declining
production and losses. PILs management decided
to sell the factory. The union objected and made
a counter bid highlighting the problems between
PIL and its workers.
The company relocated its audio product line in
Pune in spite of the move that resulted in the
displacement of 600 workers. There no signs of
discord largely due the unions involvement in the
overall process. Slowdown in CTV market demand
made the workers to think about their jobs. Due
to this the workers raised voices against the
management and asked for hike in wages. The
difference resulted in twenty months long battle
over the wages hikes issue, go slow tactics of
workers declining production and huge loss for
the company. In May 1998 PIL announced to stop
production in June 1998. A series of negotiations,
the unions and the management came to a
reasonable agreement on the issue of wage
structure.
But soon after the settlement of the wage dispute
another dispute started at the PIL Salt Lake
Factory Kolkata, when it decided to have common
manufacturing unit and integrated technology to
reduced cost. Videocon approached PIL as a
buyer but had reservations about over staffed
and underutilized plant. PIL reduced workforce
and modernized plant spending Rs 7.1 crores.
Workers approached the Videocon to withdraw
from the deal. They refused, workers filed
petition in Kolkata High Court challenging the
sale agreement. In March 1999 Kolkata Court
stroke down Philips deal with Videocon. PIL and
Videocon decided to extend their agreement by 6
months to accommodate the Courts order and
workers agitation.
The Supreme Court finally passed judgement on
the controversial Philips case in favour of PIL. The
judgement dismissed the review appeal filed by
the workers. The company transferred to
Videocon. Workers employment was taken over
by the same. The transfers of ownership didnot
interrupt the services of workmen and started
functioning from March 2001. The judgement
said that though the workers can demand for
their rights, they have no say in any of the policy
decision made by the company, if their interest
were not adversely affected.