INTRODUCTION

Human resources is used to describe both the people who work for a
company or organization and the department responsible for managing resources
related to employees. The term human resources was first coined in the 1960s when
the value of labor relations began to garner attention and when notions such as
motivation, organizational behavior, and selection assessments began to take shape.

Human resource management is a contemporary, umbrella term used to

describe the management and development of employees in an organization. Also
called personnel or talent management (although these terms are a bit antiquated),
human resource management involves overseeing all things related to managing an
organization’s human capital.

OBJECTIVES
 To provide, create, utilise and motivate employees to accomplish
organisational goals.
 To secure integration of individual and groups in securing organisational
effectiveness.

 To create opportunities, to provide facilities, necessary motivation to

individual and group for their growth with the growth of the organisation by
training and development, compensation etc.

 To employ the skills and ability of the workforce efficiently, i.e., to utilise
human resources effectively.

 To increase to the fullest the employee’s job satisfaction and self-actualisation;

it tries to prompt and stimulate every employee to realise his potential.

 To create a sense and feeling of belongingness team-spirit and encourage

suggestions from employees.

 To help maintain ethical policies and behaviour inside and outside the
organisation.

 To maintain high moral and good human relation within the organisation.

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  To manage change to the mutual advantage of individuals, groups, the
organisation and the society.

Importance of Human Resource Management:

Human resources are the valuable assets of the corporate bodies. They are

their strength. To face the new challenges on the fronts of knowledge, technology and

changing trends in global economy needs effective human resource management.

Significance of HRM can be seen in three contexts: organisational, social and

professional.

Organisation Significance:

HRM is of vital importance to the individual organisation as a means for achieving

their objectives.

 Good human resource practice can help in attracting and retaining the best
people in the organisation.

 Developing the necessary skills and right attitudes among the employees
through training, development, performance appraisal, etc.

 Securing willing cooperation of employees through motivation, participation,

grievance handling, etc.

Social Significance:

Social significance of HRM lies in the need satisfaction of personnel in the

organisation. Since these personnel are drawn from the society, their effectiveness

contributes to the welfare of the society. Society, as a whole, is the major beneficiary

of good human resource practice.

 Employment opportunities multiply.

 Eliminating waste of human resources through conservation of physical and

mental health.

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  Scare talents are put to best use. Companies that pay and treat people well
always race ahead of others and deliver excellent results.

Professional Significance:

Professional significance of HRM lies in developing people and providing

healthy environment for effective utilisation of their capabilities.

 Developing people on continuous basis to meet challenge of their job.

 Promoting team-work and team-spirit among employees.

 Offering excellent growth opportunities to people who have the potential to

rise.

 Providing environment and incentives for developing and utilising creativity.

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.

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 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 Legislation’s 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.

TRADE UNIONS:
“A trade union is a combination of persons. Whether temporary or permanent,
primarily for the purpose of regulating the relations between workers and employers
or between workers for imposing restrictive conditions on the conduct of any trade or
business and includes the federations of two or more trade unions as per Sec. 2 (6)
Trade Unions Act, 1926.

“A Trade Union is an organisation of workers, acting collectively, who seek to protect

and promote their mutual interests through collective bargaining”.

An organization whose membership consists of workers and union leaders, united to

protect and promote their common interests.

The principal purposes of a labor union are to

 Negotiate wages and working condition terms

 Regulate relations between workers (its members) and the employer
 Take collective action to enforce the terms of collective bargaining
 Raise new demands on behalf of its members
 Help settle their grievances.

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A trade union may be:

 A company union that represents interests of only one company and may not have
any connection with other unions. Also called house union, a company union is
often a bogus one and generally illegal.
 A general union that represents workers from several companies in the same
industry. Also called industrial union.
 A craft union that represents skilled workers in a particular field such as carpentry
or welding.

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 NEED FOR THE STUDY

The trade unions are the organizations formed to improve the conditions of labour
and to further to attain better life.
 The individual workers all alone feels specially weak in a world of mass
production and mass movement. An organization may give him an opportunity
to join others for the achievement of those objectives that he considers as
socially desirable.
 The basic purpose of trade union is to safeguard the economic interests of its
members.
 A worker does not only require the bare necessaries of existence but he also
wants to obtain the amenities of civilized life, e.g., a better home, more
leisure, better conditions of work, etc.
 The need for trade unions arises due to this fact also that the workers require
help in time of sickness or death, protection from suffering and want when
they are not of a job and an income of some kind when they are too old to
work any more.

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

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 SCOPE OF THE STUDY

The employee’s unions are primarily concerned with the terms and conditions of
employment of their members. The employer’s associations on the other hand are
concerned among other things with influencing the terms of purchase of services in
favor of their members. Hence, the two should not be placed in one category.

The associations of professional members also differ fundamentally from employees

unions. Professional associations include self employed as well as the employees
where as trade unions consist only of the people who are employed by others. In India
the term Trade Union refers besides employee’s organizations to employers
association also. Similarly in Britain,even the associations of professional people such
as Artists Federation of Musicians Unions are also recognized as Trade Unions. Thus
trade unions are a major component of the modern industrial relation system. A trade
union of workers is an organization formed by workers to protect their interests.
I.e.improve their working conditions etc. All trade unions have objectives or goals to
achieve, which are contained in their constitution and each has its own strategy to
reach those goals.

Trade Unions are now considered a sub-system which seeks to serve the specific sub-
groups interest and also considers itself a part of the organization, in terms of the
latter’s viability and contribution to the growth of the community of which it is a part.

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 OBJECTIVES OF THE STUDY

 To study the role of Trade Unions, Grievance Handling, discipline,

Participative Management in maintaining cordial Industrial Relations at
Visakhapatnam Steel Plant (VSP).
 To improve the economic lot of workers by securing them better wages.
 To secure for workers better working conditions.
 To ensure stable employment for workers and resist the schemes of
management which reduce employment opportunities.
 To provide legal assistance to workers in connection with disputes regarding
work and payment of wages.

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 METHODOLOGY OF THE STUDY

The Project Scenario entitled “A study on Trade unions scenario and its
impact in Visakhapatnam Steel Plant” was carried out for 8 weeks at Visakhapatnam
Steel Plant.

DATA COLLECTION:
The study was carried out by collecting and analyzing the data collected
both from Primary and Secondary sources.

PRIMARY DATA:
Primary Data was collected by discussions with managers and the employees.
A Questionnaire was prepared and administered on a sample of 100 containing
executives (35), non-executives (50) and unskilled labour (15). The data collected is
analyzed to know the perception of executives, non-executives and unskilled labour
towards their role in maintaining the cordial Industrial Relations.

SECONDARY DATA:
Secondary data is collected from Company Records, In-house Magazines, and
Internet regarding the Industry and company profile and also about Industrial
Relations events in Visakhapatnam Steel Plant right from its inception

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 LIMITATIONS OF THE STUDY

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 factors 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 employer timings and the shifts of the
employees.

 The subject is quite exhaustive and only a limited portion of it could be worked
with.

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

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 STEEL INDUSTRY PROFILE

Steel comprises one of the most important inputs to all sectors of the economy.
Steel Industry is both a basic and a core Industry. The economy of any nation depends
on a strong base of Iron and Steel Industry in that nation. History has shown that the
countries having a strong potential for Iron and Steel Industry have played a
prominent role in the advancement in the civilization in the world. Steel is such a
versatile commodity that every object we see in our day to day life has used for such
small items as nails, pins, needles etc., to surgical instruments, agricultural
implements, boilers, ships, railway materials, automobile parts. The great investments
that has gone into the fundamental research in Iron and Steel Technology has helped
both directly and indirectly many modern fields of today’s science and technology.
Steel is versatile and indispensable item. The versatility of steel can be traced mainly
of three reasons.
1 It is only metallic item, which can be conveniently and economically produced
in tonnage quality.

2 It has got very good strength coupled with malleability

3 Its properties can be changed over a wide range. Its properties can be
manipulated to any extent by proper heat treatment techniques.

Iron and Steel making as a craft as been known to India for a long time.
However, its production in significant quantities only after 1900.

Pre-Independence Era:
By 1950 the total installed capacity for ingot steel production was 1.5 million
tons per year. In 1830 James Heath constructed the first manufacturing plant at port
Nova in Madras Presidency. But it was a financial failure.

In 1874 James Erskin founded the Bengal Iron works. It was passed on to
M/s. Hoare Hiller and Co. in 1882 and to M/s. Martin and Co. in 1885. In 1899
Jamshedji Tata initiated the scheme for an integrated steel plant. In 1906 Sakhi in
Bihar was chosen as the site for the “Tata Iron and Steel Company”. The same place
is known as Jamshedpur. In 1918 initially “Indian Iron and Steel Company” was

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founded and the “Bengal Iron and Steel Company” was merged with it in 1920.
TISCO produced steel in 1939. Between 1940-50 formation of major Iron and Steel
at Bhadravathi in Karnataka owing to the pioneering effort of Shri.Visveswarayya in
1936 it started manufacturing steel and after 1945 adopted electric reduction of Iron
ore. It has also started manufacturing Ferro alloys and special steel.

Post-Independence period:
After the Independence the Government has taken steps to improve the Steel
Industry from the following Five-Year Plans.

 First Five year plan (1951-1956)

No new steel plant came up. The Hindustan Steel Limited was born in
the year 1954 with the decision of setting up 3 plants each with one million tones
ingot steel per year at Rourkela, Bhopal and Durgapur, TISCO started its expansion
program.

 Second Five year plan (1956-1961)

A bold decision was taken up to increase the ingot steel output in India to 6
million tones per year and the production at Rourkela, Bhilai and Durgapur steel plant
started. Rourkela steel plant was established with the collaboration of West Germany,
Bhilai steel plant with USSR and Durgapur steel plant with Britain.

 Third Five year plan (1961-1966)

During the plan, the 3 steel plants under Hindustan Steel Limited
(Rourkela, Bhilai and Durgapur) Plants were expanded. In January 1964, Bokaro
Steel Plant came into existence.

 Fourth Five year plan (1969-1974)

Salem Steel Plant started. Government of India gave permission for
setting up Steel Plant in south at Visakhapatnam. Steel Authority of India Limited was
formed during this period on 24th January 1973.

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  Fifth Five Year Plan (1974-1979)
The idea of setting up the 5th integrated Steel Plant, the Ore-based plant
at Visakhapatnam took a definite shape. At the end of the fifth five-year plan, the
total installed capacity from 6 integrated plants was 10.6 million tones.

 Annual plan (1979-1980)

The erstwhile Soviet Union agreed to help in setting up of the
Visakhapatnam Steel Plant.

 Sixth Five year plan (1980-1985)

The construction activities were started at Visakhapatnam Steel Plant
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
Tata Iron and Steel Company were initiated. Capacity at the end of sixth five year
plan from 6 integrated plants stood 11.5 million tones.

 Seventh five year plan (1986-1991)

Expansion work at Bhilai and Bokaro Steel Plant was completed.
Progress of Visakhapatnam Steel Plant picked up and the rationalized concept has
been introduced to commission the plant with 3 million tone capacity by 1990.

 Eight Five year plan (1992-1997)

The Visakhapatnam Steel Plant was commissioned in 1992. The plant
started its production and its cost became around Rs.8, 755 cores. Modernization of
other steel plants was also duly envisaged.

 Ninth Five year plan (1997-2002)

Visakhapatnam steel plant had foreseen a 7% growth during the entire
plan period.

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  Tenth Five Year Plan (2002-2007)
Steel industry registers the growth of 9.9 % Visakhapatnam steel plant
high regime targets achieved the best of them.

 Eleventh Five Year Plan (2007-2012)

Steel industry is trying to achieve its vision and mission by 2010 or
during this entire plan period.

The technology revolution in steel making has led to the problems of today.
Until the 1980’s barriers to entry in the Industry were prohibitive. With new steel
making technologies, the structure of the Industry changes in the mid-1980. With the
addition of new capacity through the mid-1990’s, supply exceeded demand for the
first time in the century, leading to severe competition in the world market.

The pricing structure in the past 20 years has grown increasingly

“competitive”. But with each passing year, an ever rising number of steel mills the
world over have come to believe that their production actions make no difference
when it comes it pricing. The strategy has to maximize the output as long as prices
remain above their marginal cost. Hence price competition has grown severe, even at
high operating rates.

With capacity additions becoming easier, surplus capacity particularly in

developing regions will be a problem in the coming years. The world steel market in
2001 moved largely downhill, with volume and prices sinking rapidly over the year
until early 2002.

Looking back to the mid-1990’s the global steel industry has suffered through,

1 In 1995, a pricing “death spiral” when the global economy was rising

2 In 1998 a “death spiral” when the global economy was stagnant after the Asian
Financial Crisis.

3 In 2000, a “death spiral” when the global economy was booming

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4 In the second half of 2001, after a moderate recovery in the first half of the year, a
renewed price collapse

The world leaders in steel production were the Erst-while Soviet Union, the
United States, the United Kingdom, France and Germany. However over the last 25
years, there has been a shift from the western to the eastern hemisphere. Now China
is the largest producer in the world. India, with a capacity of 34 million tones with an
actual production of 30 million tones, continues to have unutilized capacity. One
exception is Rashtriya Ispat Nigam Limited which has raised its production by 10 per
cent with all major units exceeding their rated capacities with the initiatives taken by
the Government in meeting infrastructure needs, the demand for steel has started
showing significant improving.

At present India is the 10th largest producer of steel in the world. In India, a
major part of steel is consumed in engineering applications, followed by automobiles
and construction. The growth of steel, as is well known, is dependent upon the
growth of the economy, industrial production and infrastructure sectors. Over the last
few years the performance of the Indian steel industry has been adversely affected due
to overcapacity, cheap imports, economic slowdown, declining global steel prices and
also anti dumping duty imposed by USA on Indian exports. Most major steel
companies, with the exception of Tata Steel, have thus been reporting losses.

However, the initial indications are that 2002 would be a better year as far as
demand is concerned. Of late there has been some revival in the automobile sector.
The demand for two-wheelers, passenger cars and HCV segment are witnessing a
recovery. This recovery in the automobile sector is expected to benefit the steel
industry. Any step up in government expenditure on infrastructure projects is also
likely to benefit the steel sector.

Industry Classification
The industry classification based on product categories and the major
producers can be divided into the following:

Iron ore – National Mineral Development Corporation (NMDC), Kudremukh Iron

Ore Co (KIOCL) and Sesa Goa (Sesa) are the major merchant producers of iron ore.
SAIL and Tata Steel have their captive.

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Pig iron – KIOCL, Sesa Goa and Usha Ispat. Apart from them there are many mini
blast furnace (MBF) pig iron producers and even integrated steel plants of SAIL and
RINL produce a significant amount of pig iron.

Sponge Iron – Essar Steel, Ispat Industries, Vikram Ispat (a division of Grasim) are
the major producers of gas based sponge iron.

Flat steel products:

SAIL, Tata Steel, Essar Steel, Ispat Industries and Jindal Vijaynagar (JVSL)
are the major producers of hot rolled coils (HRC). SAIL, Tata Steel, Ispat Industries,
Jindal group of companies, Uttam Steel and Bhushan Steel are the big producers of
cold rolled coils/sheets (CRC) and galvanized sheets 9GP/GC).

Long products – RINL, SAIL and Tata Steel are the major producers of long
products.

Alloy Steel products – Mukand, Mahindra Ugine (Musco) and Kalyani Carpenter
are some of the largest producers of alloy steel in the country, which is primarily
used, in automotive and engineering applications.

Based on the routes of production, the industry and major producers can be classified
into the following categories;

Integrated producers – SAIL, RINL, Tata Steel and JVSL are the largest
primary steel producers.

Secondary users – Essar Steel, Ispat Industries and Lloyd’s steel are the largest
producers of steel through the secondary route production.

THE MAJOR STEEL AND RELATED COMPANIES IN INDIA

1. Bharat Refactories Ltd.
2. Hindustan Steel Works Construction Ltd.
3. Jindal Steel and Power Ltd.
4. KudremukhIron Ore Company Ltd.
5. Manganese ore (India) Ltd.
6. Metal Scrap Trade Corporation Ltd.
7. Metallurgical and Engineering Consultants India Ltd.

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 8. National Mineral Development Corporation (NMDC).
9. Rashtriya Ispat Nigam Ltd.
10. Sponge Iron India Ltd.
11. Steel Authority of India ltd.
12. Tata Iron Steel Company.

The global steel industry has witnessed several revolutionary changes during the
last century. The changes have been in the realms of both technology & business
strategy. The ultimate object of all these changes is to remain competitive and open
global market.
The Indian steel industry is growing very rigorously with the major producers
like SAIL, RINL, TISCO, JVL and many others. Our steel industry has amply
demonstrated its ability of adopts to the changing scenario and to survive in the global
market that is becoming increasingly competitive. This has been possible to a large
extent due to the adoption of innovative operating practices and modern technologies.
Industrial Development in India has reached a high degree of self-reliance, and
the steel industry occupies a primary place in the strategy for future development. At
present the production of steel industry country is 34Mt. the public sector steel
industry has been restructured to meet challenges and a separate fund has been
established for modernization and future development of the industry. It is now being
proposed that Indian steel industry should Gear up to achieve a production level of
about 100 Mt by the year2000.

GLOBAL SCENARIO (As per IISI)

1 In March’ 2005 world Crude steel out put was 928Mt when compared
to march 2004 (872Mt), ∙The change in percentage was 6.5%.
2 China remained the world largest crude steel producer in 2005 also
(275Mt) followed by Japan (96Mt) and USA (81Mt). India occupied
8th position (42Mt).
3 USA remained the largest importer of semi finished and finished
products in 2002 followed by China and Germany.
4 Japan remained the largest exporter of semi finished and finished steel
products in 2002 followed by Russia and Ukraine.

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 5 Other significant recent developments in the global steel scenario have
been: Under the auspices of the OECD (Organization For Economic
Co-operation & Development) the negotiations among the major steel
producing countries for a steel subsidy agreement (SSA) held in 2003
with the objective to agree on a complete negotiating test for the SSA
by the Middle of 2004. It also set subsidies for the steel industry of a
ceiling of 0.5% of the value of production to be used exclusively for
Research & Development
6 The global economy witnessed a gradual recovery from late 2003 on
words. China has become one of the major factors currently driving the
world economy.
7 As a result of these economic developments IISI has projected an
increase by 6.2% or 5.3 Mt in 2004 in the global consumption of
finished steel products. IISI has split the growth into two separate
areas, china and the rest of the world (ROW). Steel consumption in
china has been estimated to increase by 13.1% or 31Mt in 2004.
8 USA has repealed the safeguard measures on import of steel as a result
of a ruling by a WTO dispute resolution panel, which held these
measures to be illegal under the WTO regime.

MARKET SCENARIO
The year 2004-05 was a remarkable one for the steel industry with the world
crude steel production crossing the one billion marks for the first time in the history of
the steel industry. The world GDP growth about 4% lends supports to the expectations
the steel market is all set for strong revival after prolonged period of depression .The
Indian economy also become robust with annual growth rates of 7-8 % this will
provide a major boost the steel industry. With the nations focus on infrastructure
development coupled with the growth in the manufacturing sector, the Indian steel
industry all set for northward movement. The draft national steel police envisage
production of 60 Mt by 2012 and 110Mt by2020, and annual growth rate of 6-7%. All
this should there fore augur well for the Indian steel industry.

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PRODUCTION SCENARIO

1 Steel industry was de-licensed and decontrolled in 1991&1992 respectively.

2 India is the 8th largest producer of steel in the world.
3 In 2003-04 finished steel production was 36.193Mt.
4 Pig iron production in 2003-04 was 5.221Mt.
5 Sponge iron production was 80.85 Mt during the year 2003-04
6 The annual growth rate of crude steel production in 2002-03was 8% and in 2003-
04 was 6%.

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 VISAKHAPATNAM STEEL PLANT PROFILE

Steel in today’s economy has occupied a position inseparable from the human
routine. There is no place and no function, which the present day human can imagine
working with out the use of steel. Naming a few, where we find these, recollecting the
routine helps us. From tongue cleaners to shaving kits and blades, from utensils to
frying pans, from mugs to buckets to water filters, from chassis to the engine of
automobiles and the list goes on.
The govt. of India has recognized the importance of steel in Indian industry and
established the following steel plants, before it actually set up VSP/RINL. The details
of those are tabulated below

STEEL PLANT COLLABORATED BY

SL.NO.
1 Durgapur steel plant Britain
2 Bhilai steel plant Erstwhile USSR
3 Bokaro steel plant Erstwhile USSR
4 Rourkela steel plant Germany

INTRODUCTION:

Steel occupies the foremost place amongst the materials in use today and
pervades all walks of life. All the key discoveries of the human genius – for instance,
steam engine, railway, means of communication and connection, automobile, aero
plane and computers, are in one way or other, fastened together with steel and with its
sagacious and multifarious application. Seeds were thus sown for the construction of a
modern & sophisticated Steel Plant having annual capacity of 3.4 Million Tones of
hot metal. 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. Dustur & Company. A Comprehensive revised DPR jointly prepared by Soviets
& M/s Dustur & Company was submitted in Nov' 1980 to Govt. of India

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 The project was estimated to cost Rs.8397.28 Cr. based on prices as on
quarter of 1981. However, on completion of construction and commissioning of the
whole plant in 1992, the cost escalated to around Rs.8,500 Cr. Unlike other integrated
steel plants in India, Visakhapatnam steel plant (VSP) is one of the most modern steel
plants in the country. The plant was dedicated to the nation on 1st August 1992 by the
then Prime Minister, Shri PV Narasimha Rao. The construction of the Plant started on
1st February 1982. Government of India on 18th Feb'82 formed a new Company
called Rastriya Ispat Nigam Ltd. (RINL).
New technology, large-scale computerization and automation etc., are
incorporated in the plant. To operate the plant at international levels and attain
such labour productivity, the organizational manpower has been rationalized. The
plant has a capacity if producing 3.0 mT of liquid steel and 2,656 mT of saleable
steel.

MAJOR UNITS

Annual

Department Capacity Units (3.0 MT Stage)

(‘000 T)
Coke Ovens 2,261 4 Batteries of 67 Ovens &7 Mtrs. Height
Sinter plant 5,256 2 Sinter machines of 312 Sq. Mtr. Grate area each
Blast furnace 3,400 2 Furnaces of 3200 Cu. Mtr. Volume each
3 LD Convertors each of 133 Cu. Mtr. Volume & six 4 strand
Steel melt shop 3,000
bloom casters
LMMM 710 4 stand finishing Mill
WRM 850 2x10 stand finishing Mill
MMSM 850 6 stand finishing Mill

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Main Products of VSP

Steel Products By-Products

Angles Nut Coke Granulated Slag
Billets Coke Dust Lime Fines
Channels Coal Tar Ammonium Sulphate
Beams Anthracene Oil
Squares HP Naphthalene
Flats Benzene
Rounds Toulene
Re-bars Zylene
Wire Rods Wash Oil

Visakhapatnam Steel Plant Technology: state-of-the-art

 7 meter tall Coke Oven Batteries with coke dry quenching

 Biggest Blast Furnaces in the country

 Bell-less top charging system in Blast Furnace

 100% slag granulation at the Blast Furnace cast house

 Suppressed combustion – LD gas recovery system

 100% continuous casting of liquid steel

 “Tempcore” and “Stelmor” cooling process in LMMM & WRM respectively

 Extensive waste heat recovery systems

 Comprehensive pollution control measure

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Major Sources of Raw Materials

RAW MATERIALS SOURCE

 Iron ore lumps & fines. Bailadilla, MP.

 BF limestone. Jaggayyapeta, AP.
 SMS limestone. UAE.

 BF dolomite. Madharam, AP.

 SMS dolomite. Madharam, AP.

 Manganese ore. Gharbam, AP.

Talcher, Orissa.
 Boiler coal.
Australia.
 Coking coal.
Gidi/Swang/Rajarappa/Kargali.
 Medium coking coal (MCC)

Water supply:
Operational water requirement of 36 mgd is being met from the Yeleru 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 exporting 60MW power to Andhra Pradesh State Electricity Board
(APSEB).

MAJOR DEPARTMENTS
1. Raw Material Handling Plant:-
VSP annually requires quality raw materials viz. Iron Ore fluxes (Lime stone,
Dolomite); coking and non coking coals etc. to the tune of 12-13 Million Tones for
producing 3 Million Tones of Liquid Steel. To handle such a large volume of
incoming raw materials received from different sources and to ensure timely supply of
consistent quality of feed materials to different VSP consumers, Raw Material

23
Handling Plant serves a vital function. This unit is provided with elaborate unloading,
blending, stacking & reclaiming facilities viz. Wagon Tipplers, Ground & Track
Hoppers, Stock yards Crushing plants, Vibrating screens, Single/ twin boom stickers,
wheel on boom and Blender reclaimers. In VSP peripheral unloading has been
adopted for the first time in the country.

2. Coke Oven Department:-

The main function of this department is to convert the coal in to coke, which is
received from RMHP Department.
Coke is a hard porous mass obtained by functional distillation of coal in absence of
air at a temperature above 125oC for a period of 16-18 hours. It is used as a fuel and
reducing agent for reduction of iron ore in blast furnace. The following are the
parameters of Coke Ovens:
1 Battery = 67 ovens,& 7m high.
Total 4 Batteries= 268 ovens at VSP.
Besides coke production, a number of coal chemicals are being extracted in
coal chemical plants. The coal chemicals are tar, benzyl and ammonia based
products. The coal is not consumed directly because coke helps in reducing the
pollution.

24
3. Sinter Plant Department:-
Sinter is a hard and porous lump obtained by agglomeration of lines of iron
ore, coke, limestone and metallurgical waster. This department by not wasting the
powder and small pieces of iron ore coal manganese, dolomite and limestone makes
Sinter Cakes and put it for reuse. This increases the productivity of Blast Furnace,
improves the quality of pig iron and decreases the consumption of coke rate. Sinter
is a hard & porous ferrous material obtained by agglomeration of Iron Ore fines, Coke
breeze, Lime Stone fines, Metallurgical wastes viz. Flue dust, mill scale, LD slag etc.
Sinter is a better feed material to Blast Furnace in comparison to Iron Ore lumps and
its usage in Blast furnaces help in increasing productivity, decreasing the coke rate &
improving the quality of Hot Metal produced. Hot Sinter discharged from Sintering
machine is crushed to +5 mm - 50 mm size and cooled before dispatching to Blast
Furnaces.

Parameters of Sintering Machines are:-

Effective area 312 Sq. meter

Sintering area 276 Sq. meter
Sinter bed height 300 mm
Capacity. 450 T P H each

25
Blast Furnace:- VSP has two 3200 cu. meter Blast Furnaces (largest in India)
equipped with Paul worth Bell less top equipment with conveyor charging. Rightly
named as

Krishna Blast Furnace

Steel Melt Shop:-
Hot metal produced in blast furnace contains impurities like carbon, sulphur,
phosphorus, silicon, etc.; these impurities will be removed in steel making by
oxidation process.

There are three LD converters to convert hot metal in to steel, after the
conversion of hot metal in to steel, the steel is subjected to homogenization treatment
and cast in to blooms in continuous casting machines. Different grades of steel of
Superior quality can be made by this process by controlling the Oxygen blow or
addition of various Ferro alloys or special additives such as FeSi, FeMn, SiMn, Coke
Breeze, Aluminum etc. in required quantities while liquid steel is being tapped from
the converter into a steel ladle. Converter / LD Gas produced as by product is used as
a secondary fuel.
Characteristics of VSP Converters:-
Capacity - 150 Tones per heat blow
Volume - 133 Cu. Metre
Convertor Sp. Volume - 0.886 Meter Cube per tones

26
Tap to Tap-Time - 45 mts - 60 mts
Liquid Steel produced in LD Converters is solidified in the form of blooms in
continuous Bloom Casters. However, to homogenize the steel and to raise its temperature, if
needed, steel is first routed through, Argon rinsing station, IRUT (Injection Refining & Up
temperature) / ladle Furnaces.
Continuous casting Department:-
VSP has six-4 strand continuous casting machines capable of
producing 2.82 million Tones / year Blooms of size 250 x 250 mm and 250 x
320 mm. Entire quantity of molten steel produced (100%) is continuously cast
in radial bloom casters which help in energy conservation as well as production
of superior quality products. Facilities at continuous casting machines include a
lift and Turn table for ladles, Copper mould, oscillating system tundish,
Primary & Secondary Cooling arrangement to cool the steel bloom. Gas cutting
machines for cutting the blooms in required lengths (Av. 6 meters long).

Rolling Mills:-
Blooms produced in SMS-CCD are shaped into products such as Billets,
rounds, squares, angles (equal & unequal), Channels, I-PE Beams, HE Beams,
Wire rods and reinforcements bars by rolling them in three sophisticated high
capacity, high speed, fully automated rolling mills, namely Light & Medium
Merchant Mills (LMMM), Wire Rod Mill (WRM) and Medium Merchant and
Structural Mill (MMSM).

Light & Medium Merchant Mill (LMMM):

LMMM comprises of two units. In the Billet/Break down mill 250 x 320
mm size blooms are rolled into Billets of 125 x 125 mm size. Billets are supplied
from this mill to Bar Mill of LMMM & Wire Rod Mill. The Bar mill is facilitated
with temp core heat treatment technology evaporative cooling system in walking
beam furnaces, automated pilling & bundling facilities, high degree of automation
and computerization. The mill is designed to produce 710,000 tons per annum of
various finished products such as rounds, rebars, and squares, flats, angles, and
channels besides billets for sale.

27
 Wire Rod Mill (WRM):-
WRM is a stand mill and is fully automated with computers. The mill
consists of 2.5 stands and a capacity of 850,000 tonnes per annum. The mill product
mix includes rounds and ribbed wire in the sizes of 5.5 mm to 12.7 mm dia. wire rods
are made in coil having maximum weight of 1200 Kgs.

Liquid Steel produced in LD Converters is solidified in the form of blooms

in continuous Bloom Casters. However, to homogenize the steel and to raise its
temperature, if needed, steel is first routed through, Argon rinsing station, IRUT (Injection
Refining & Up temperature) / ladle Furnaces.
Wire Rod Mill is fully automated & sophisticated mill. The billets are rolled
in 4 strand, high-speed continuous mill having a capacity of 8, 50,000 Tonnes of Wire
Rod Coils. The mill produces rounds in 5.5 - 14 mm range and rebars in 8, 10 & 12
mm sizes. The mill is equipped with standard and Retarded Stelmore controlled
cooling lines for producing high quality Wire rods in Low, Medium & High carbon
grade meeting the stringent National & International standards viz. BIS, DIN, JIS, BS
etc. and having high ductility, uniform grain size, excellent surface finish.

28
 This mill is a high capacity continuous mill. The feed material to the mill is
250 x 250 mm size bloom, which is heated to rolling temperatures of 1200 °C in two
walking beam furnaces. The mill is designed to produce 8,50,000 tons per annum of
various products such as rounds, squares, flats, angles (equal & unequal), T bars,
channels, IPE beams I HE beams (Universal beams) .
“Godavari” & “Krishna “after the two rivers of AP, the furnaces will help VSP in
bringing prosperity to the state of Andhra Pradesh.
Provision exists for granulation of 100% liquid slag at blast furnace cast
house and utilization of blast furnace gas top pressure (1.5-2.0 atmospheric
pressure) to generate 12 MW of power in each furnace by employing gas expansion
turbines. The two furnaces with their novel circular cast house and four tap holes
each are rated to produce 9720 Tons of Hot Metal daily or 3.4 Million Tons of low
Sulphur Hot Metal annually.
Pig iron/hot metal is produced in blast furnace. The furnace is named as
blast furnace as it is running with blast at high pressure with a temperature of 1150oC.
Raw materials required for iron making are iron ore, sinter coke and
limestone. For one tone of hot metal production, 310Kgs. iron ore, 1390Kgs. sinter
and 627Kgs. of coke with some other additives.
For production of pig iron/hot metal there are two blast furnaces named
Godavari and Krishna.

AUXILIARY FACILITIES:
 Power Generation & Distribution:
The average power demands at all units of VSP when operating the full
capacity will be 221 MW. The captive generation capacity of 270 MW is sufficient to
meet all the plant needs in normal operation time. The short fall of power is availed
from APSEB grid. The agreement with APSEB provides for exporting of surplus
power to APSEB. The captive generating capacity comprises of
- TPP -247.5 MW (3x60 MW + 1 X 67.5 MW)
- Back pressure Turbines (C&CCD)* - 2 x 7.5 MW
- Gas Expansion Turbines (BF / ces)* - 2x12 MW

Power plant also meets the Air Blast requirements of Blast Furnaces thro' 3 Turbo
blowers each of 6067 NM 3 / hr capacity.

29
  Traffic Department:
A steel plant of the size of VSP has to handle around 60 to 65 MT
traffic comprising of incoming traffic in the form of raw materials and out going
traffic in the form of finished or saleable steel, and also the in process traffic such as
cast pig iron, mill scrap, hot metal. Of this 50% is transported by belt conveyors, 45%
by Rail Transport and 5% by Road. VSP has the distinction of having peripheral
unloading system for the 1st time in Steel Industry.
 Engineering shops & Foundry (ES & F):
Engineering Shops are set up to meet the requirements of Ferrous &
Non Ferrous spares of different departments. This complex is divided into 1. Forge
Shop 2. Structural shop 3. Foundry 4. Central machine shop 5. Wood Working Shop
and 6. Utility Equipment Repair Shop (UERS). In the Structural shops the fabricated
structural of about 4500 Tones are produced annually and the input consisting of
sheets, plates, channels, angles beams etc. In Foundry Iron castings up to a weight of
5 tons and non-ferrous casting up to a weight of 1 ton are produced. 2600 Tones of
iron castings and 200 tones of non-ferrous castings are produced annually.
 Central Maintenance Electrical:
Maintenance of all H.T motors, L.T motors and DC motors of above
200KW. There are 810 such large rotating electrical machines spread through out the
plant including 3 Nos. of 60 MW Turbo-Generators, 1 No of 67.5M TG in TPP, 2 no's
of Back Pressure Turbo Generators of 7.5 MW each and 2 Nos. of Gas Expansion
Turbo- Generator of 12 MW each. The service provided is as mentioned below.

a) Repairs, Maintenance and condition monitoring of all rotating Electrical

machines of the plant. The job includes transportation, Overhauling and re-
erection with precision alignment.
b) Maintenance of Electrics of all streetlights, Tower lights and Weigh Bridges
through out the plant.

30
Employee Profile:
RINL has a committed work force of 16,574 as on 01-04-2006. Out
of these, 3532 are executives, 1105 are in supervisory cadre and 11937 are non-
executives. In addition, there are about 7800 outsourced employees in many non-core
activities in various key and support processes. The age profile of the employees is
given at (Tab.O.2(i)) the qualification profile of the employees is at (Tab.O.2(ii)) and
the distribution of manpower, division-wise, is at (Tab.O.2(iii)). VSP has rationalized
the designations of non-executive employees. VSP has introduced multi-skilling
concept since inception and the employees are trained as per this concept. VSP
follows a system of overlapping shifts to ensure smooth change over. Besides the
regular manpower, about 5000 contract workers are on the rolls and their safety and
health requirements are fulfilled as per the certified OHSMS.

Organizational structure:
The organization structure and supporting management structure is depicted at
Fig.03 below. Besides the CMD and his team of Directors, there are two
representatives of the GOI / MOS on Board. The performance expectations of the key
stakeholder i.e. MOS, are captured through the annual MOU, which is drafted keeping
in view, the vision, mission, values, objectives and strategies and also taking stock of
the company’s past performance and capability. Annual sustainability plans are
stretch targets drawn from MOU and our strategic vision. The progress w.r.t. MOU is
reviewed by the BOD every quarter and by CMD every month.

Vizag Steel:
Thinking, learning … Vizag Steel has a history of overcoming odds right
from inception. Catapulted into the era of globalization & liberalization just after
commissioning, the journey of this young plant from ‘debts to dividend’ reiterates
that, the sacrifice made by those valiant people who gave up their lives in the struggle
for the creation of Vizag Steel was not in vain. Energy conservation, environmental
preservation, safety in work place, and occupational health gets highest priority in this
regard are reproduced below.

31
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 of all 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.

32
OSHAS Policy
Visakhapatnam Steel Plant is committed to occupational health and safety of
employees and contract workers. To accomplish this,
 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 minimizing 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.

33
Human Resource Development Policy
Visakhapatnam Steel Plant is committed to create an organizational culture, which
nurtures employees’ potential for the prosperity of the organization. To accomplish
this, they will
 Identify development needs of the employees on a regular basis, provide
the necessary training and continually evaluate and monitor the
effectiveness of the training so that the quality of the training also gets
updated.

 Provide inputs to the employees for developing their attitude towards work
and for matching their competencies with the organizational requirements.

 Create an environment of learning and knowledge sharing by providing the

means and facilities and also access to the relevant information and
literature

 Facilitate the employees for continuous development of their knowledge

base, skills, efficiency, innovativeness, self-expression and behavior so
that they contribute positively with commitment for the growth and
prosperity of the organization while maintaining a high level of motivation
and satisfaction.

 Prepare employees through appropriate development programmes for

taking up higher responsibilities in the organization.

HRD Group – Key Initiatives

 In – house Training Programs

 Nominations to External Training Programs

 Organization Research, Employees Satisfaction Surveys, Voice of

Employees Index.

 Organization Development

 Membership with Professional bodies

 Performance Appraisal for Executives

 Human Resource Information System

34
  In – Plant training for Management Students

 Lectures by eminent personalities

 Corporate Presentations

 Interactions with professionals, academicians and consultants

 Knowledge Management

 Initiatives on “Six Sigma”

 Emancipation of women through WIPS, Women Development Programs

(Spring Board)

 Thrust on “Samalochana”

 Pursuit of Business Excellence Model (BEM)

Customer Policy
 Visakhapatnam Steel Plant will Endeavour to adopt a Customer – focused
approach at all times with transparency

 Visakhapatnam Steel Plant will strive to meet more than the Customer
needs and expectations pertaining to Products, Quality, and Value for
Money and Satisfaction.

 Visakhapatnam Steel Plant greatly values its relationship with Customers

and would make efforts at strengthening these relations for mutual benefit.

Information Technology Policy

RINL / VSP is committed to leverage Information Technology as the vital
enabler in improving the customer – satisfaction, organizational efficiency,
Productivity, decision – making, transparency and cost – effectiveness, and thus
adding value to the business of steel making.
Towards this, RINL shall:
 Follow best practices in Process Automation & Business Processes
through IT by in – house efforts / outsourcing and collaborative efforts
with other organizations / expert groups / institutions of higher learning
etc., thus ensuring the quality of product and services at least cost.

35
  Follow scientific and structured methodology in the software development
processes with total user – involvement, and thus delivering integrated and
quality products to the satisfaction of internal and external customers.

 Install, maintain and upgrade suitable cost – effective IT hardware,

software and other IT infrastructure and ensure high levels of data and
information security.

 Strive to spread IT – Culture amongst employees based on organizational

need, role and responsibilities of the personnel and facilitate the objective
of becoming a world – class business organization.

 Enrich the skill – set and knowledge based of all related personnel at
regular intervals to make employees knowledge – employees

 Periodically monitor the IT investments made and achievements accrued

to review their cost effectiveness.

COMPANY’S CORPORATE SOCIAL RESPONSIBILITY

RINL’s concern for the society is reflected in its vision, mission, objectives
and core values. The statement, “We shall be a respected corporate citizen, ensure
clean and green environment and develop vibrant communities around us” forms a
part of the vision of the company. “Concern for environment” is one the five core
values. Major CSR activities undertaken by RINL are as under:
Environment
Education
Health Services
Peripheral Development
Sports and games
Contributions and Sponsorships
Promoting National Integration
With a view to improving the standard of living of the people in the neighbouring
localities/villages and in the process improves its image; RINL has taken up some
important projects, which are indicated below.

1 Supply of drinking water to Gajuwaka (adjacent municipality)

2 Provision of roads and lighting in RH colonies

36
 3 Donation of medical equipment to King George Hospital (KGH)

4 Construction of sports towers in port stadium, Visakhapatnam

5 Association in preparation of Visakhapatnam Development report

6 Major financial assistance for water pumping system from Godavari river
to Visakhapatnam

7 Financial assistance to agencies engaged in development of the mentally

challenged children

Apart from this, the company takes up publicity campaigns to make the people
aware of the products, services and performance of RINL. In order to maintain
specific identity of RINL’s products, the company initiated the process of
branding its products. The TMT bars produced at RINL have been branded as
Vizag TMT and the structurals as Vizag Ukku.

Training & Development

The needs of induction training, skill up gradation, unit training, computer

related training, refresher training, faculty development etc. are attended by the
Training & Development Centre while management development and attitudinal
development are taken care at the Centre for HRD.

Marketing Network

VSP has a wide network of regional offices and branch offices spread across
the country for marketing of its products. There are 5 Regional Offices and 23 Branch

Offices. The details of Regional Offices and Branch Offices are brought out below:

37
Region Location of Regional Branches
Office

East Kolkata Bhubaneswar, Kolkata, Patna

North Delhi Agra, Chandigarh, Dehradun, Delhi,

Faridabad, Ghaziabad, Jaipur, Kanpur,
Ludhiana

West Mumbai Ahmedabad, Indore, Mumbai, Nagpur,

Pune

South Chennai Bangalore, Chennai, Kochi, Coimbatore

Andhra Visakhapatnam Hyderabad, Visakhapatnam

Further, VSP has 4 Consignment Sales Agents in Raipur, Jamshedpur,

Pondichery and Jammu for selling VSP’s products.

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 3.4 million trees over an area of 35 Sq. Kms. and incorporated various
technologies at a cost of Rs.460 Crores towards pollution control measures.

Human Resource Management

Human resource initiatives at Visakhapatnam Steel Plant are closely linked to

the corporate strategy of the organization. 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

38
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. The labour productivity is 389 tones/man/year for
(2007-08).

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 Measures In VSP

Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, considers human
resources as the most important of all the resources in the company. Its development
& welfare have therefore been given the utmost emphasis in the overall policy of
Human Resources Management of the company. Pursuant to this policy, VSP has
taken several initiatives for introducing & implementing Statutory as well as Non-
Statutory Welfare schemes which together impart and propagate the feeling that the
“Company cares for its employees”.

Besides the Statutory Welfare Measures, the company has been taken up the
Non-Statutory Welfare and Social Security Schemes for the benefit of the employees
and their family members, which are detailed below

39
Statutory Welfare Measures Non-Statutory Welfare Measures

Canteen Facilities Facilities For Education

Baby Creche Scholarships

First Aid Facilities Medical Facilities

Water Coolers Housing Facilities

Leave & Maternity Leave Work Dress

Factories Act Vehicle Advances To Employees

Gratuity House Building Advance

Workmen’s Compensation Motivational Schemes

Contract Labour Welfare

Achievements and Awards

The Visakhapatnam Steel Plant Bagged the Prestigious PM’s Trophy for the
year 2002-03 for its best performance in the integrated steel sector of the country.

Some of the major awards received by Visakhapatnam Steel Plant are in the
area of energy conservation, environment protection, safety, Quality, Quality Circles,
Rajbhasha, Memorandum of Understanding, sports related awards and a number of
awards at the individual level.

There is something about the sea that touches each one of us. Never silent,
changing with every second, every minute, every hour of the day and night. An
eternal flow that transforms anything that comes in contact with it. It is the same
driving force that guides people at RINL to face the challenges of change.
Visakhapatnam Steel Plant achieved the distinction of bettering some of the
global benchmark thereby becoming an efficient and productive integrated Steel Plant
in the Country.

40
Some of the important awards received by RINL are indicated
below:

1 ISO 9002 for SMS and all the downstream units – a unique distinction in the
Indian Steel Industry

2 Indira Priya Darshini Vriskha Mitra Award: 1992-93

3 Nehru Memorial National Award for Pollution Control: 1992-93 & 1993-94

4 EEPC Export Excellence Award: 1994-95

5 CII (southern region) Energy Conservation Award: 1995-96

6 Golden Peacock (1St prize) “National Quality Award-96” IIM

7 Steel Minister’s Trophy for “Best Safety Performance – 1996”

8 Selected for “World Quality Commitment Award – 1997” of J*BAN, Spain

9 Gold Star Award for Excellent performance in Productivity

10 Udyog Excellence Gold Medal Award for Excellence in Steel Industry

11 Excellence Award for outstanding performance in Productivity management,

Quality & Innovation

12 Ispat Suraksha Puraskar (First Prize) for longest Accident free period, 1991-94

13 Best Labour Management Award from the Government of Andhra Pradesh

14 SCOPE Award for best turnaround for 2001

15 Environment Excellence Award from Greentech Foundation for energy

conservation in 2002

16 Best Enterprise award from SCOPE, WIPS for 2001-02, besides

17 A number of Awards at the Local, Regional & National level competitions in

the area of Quality Circles & Suggestion Schemes, etc.

18 PM’s Trophy for the year 2002-2003

19 CACCI Business Achievement award for environmental conservation and

pollution control by FICCI in 2004

41
 20 CII-GBC National Award for Excellence in Energy Management in 2005

21 Best Industrial Productivity Award (Pandit Jawaharlal Nehru Silver Rolling

Trophy) for Outstanding productivity effort in manufacture of steel products
by FAPCCI in 2006

22 Organizational Excellence Award for Efficient Suggestion scheme operation

given by INSSAN in 2006

23 Best Company Work Award by ‘The Economic Times & Great Place To
Work Institute’- in 2009 for inspiring trust among people, instilling pride in
them etc.

Statistical Information
Production Performance (‘000 Tones)

Years Hot Metal Liquid Metal Saleable Steel

2004-2005 3920 3560 3173
2005-2006 4153 3603 3237
2006-2007 4046 3606 3290
2007-2008 3913 3322 3074
2008-2009 3546 3145 2701
2009-2010 3900 3399 3167
2010-2011 3830 3424 3077
2011-2012 3778 3410 2990
2012-2013 3814 3250 2900
2013-2014 3769 3390 3016
2014-2015 3780 3488 3017
2015-2016 3975 3826 3513
2016-2017 4386 4176 3847

42
 18000
16000
14000
12000
10000
8000 Sales Turnover
6000
4000
2000 Domestic Sales
0
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
COMMERCIAL PERFORMANCE (Rupees in Crores):-

Year Sales Turnover Domestic Sales Exports

2004-2005 8181 7933 248
2005-2006 8469 8026 443
2006-2007 9131 8487 424
2007-2008 10433 9878 555
2008-2009 10411 10333 78
2009-2010 10635 10284 351
2010-2011 11517 11095 422
2011-2012 14462 14047 416
2012-2013 15451 15041 410
2013-2014 13488 12741 747
2014-2015 11673 10807 865
2015-2016 12281 11095 1186

2016-2017 12781 12780 1048

43
 18000
16000
14000
12000
10000
Sales Turnover
8000
6000
Domestic Sales
4000
2000
0

FINANCIAL PERFORMANCE (Rupees in Crores):-

Year Gross margin Cash profit Net profit

2004-2005 3271 3260 2008

2005-2006 2383 2355 1251

2006-2007 2633 2584 1363

2007-2008 3515 3483 1943

2008-2009 2355 2267 1336

2009-2010 1603 1525 797

2010-2011 1412 1247 670.8

2011-2012 1167 1110 749.4

2012-2013 1265 1250 845

2013-2014 1159 821 366

2014-2015 809 103 62

2016-2017 790 1417 -1420

44
100%

80%

60%

40% Net profit

Cash profit
20% Gross margin

0%

-20%

-40%

Man power as on 1-03-2016

Non-executives Executives

Commercial 106 546

Crop office 8 46

Finance 14 256

HR 479 501

Operations(IT) 213 221

Projects 47 368

Vigilance 4 28

Works 10678 4119

Grand total 11549 6085

45
 TRADE UNION POLICY IN VSP

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 union’s 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.
Trade union is a historical necessity and by product of the Industrial
revolution. For good Industrial Relations, be remember that trade Unions play a vital
role. With a view to self-protection and self-help, labour has organized itself under
employee associations and unions. Conflict between capital and labour in Europe and
American resulted in the origin of the trade union movements.

Trade Unions Definition:

The trade unions Act, 1926 defines a trade union as meaning--
“Any combination whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and employers
or between workman and workmen, or between employers and employers or for
imposing restrictive conditions on the conduct of any trade or business, and includes
any federation of two or more trade unions.”

Registration of Trade Unions:

Any seven or more members of a trade union can, by subscribing their
names to the rules of the trade union and otherwise complying with the provisions of
this Act, apply for registration under the Act. The application has to be made to the
Registration of Trade Unions appointed by the appropriate Government for the State
(sec3&4). This application must be accompanied by a copy of the Rules of the Trade
Union and a statement containing prescribed particulars.
The name under which the trade union seeks registration must not be similar to that of
any existing union (S.7). On registration, the Registrar issues o certificate of
registration in the prescribed form. This is conclusive evidence that the said Trade
Union has been duly registered.

46
 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 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.
The following are various tools employed by the Trade Unions. They may use
one of the too, or combination of some of them in pursuit of achievement of their
objectives.

 Financial Support:
It means the provision of a fund to insure against eventualities and be of some
encouragement to the needy workman. It also acts as a deterrent to a worker from
accepting jobs on terms, which are less advantageous to the work force.

 Collective Bargaining:
This is useful for the workers, as their capacity to get the best in Industry
diminishes in case there are small groups, whereas the bargaining power goes high
when it is a collective and collaborative approach. Lasting settlements can be reached
through collective bargaining and implementation also is quick and smooth.

 Legal Approach:
Trade Unions also take the law as resort to realize their objectives. Also
they employ the usual methods of propaganda, canvassing etc. to convince the
community and the Government that the measures suggested for adoption will prove
advantageous to the working class. When such aspirations are reflected by enactment,
it satisfies the Trade Unions.

 Direct Action:
Implies, strikes, gheraos, procession, work stoppages, demonstrations etc.
This should be discouraged because it is harmful in the long run for both the
employees and employers. This leads to loss in production, strained relations.

47
OBJECTIVES OF TRADE UNIONS:
The following are some of the aims and objectives of trade unions:
1) To secure for the worker fairer wages in the light of the cost of living and
the prevailing standard of living.
2) To improve the worker ‘s working conditions by securing shorter working
hours, better leave facilities, adequate social security benefits, appropriate
educational facilities and other welfare benefits:
3) To assure the workers a share in the increased profitability of an industrial
unit by providing him payment of adequate bonus;
4) To protect the workers interest and more specifically to avoid heir
exploitation.
5) To ensure the workers security of employment by resisting retrenchment
and victimization.
6) To protect the large interest of society by aiding in the improvement of
trade and industry.

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 union’s 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 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.

48
 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 undShapurji 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 “Vishakha 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

49
labour activities. Visakhapatnam Steel Plant being a new organization, 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.

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 Vishakha Steel Mazdoor
Sangh, the 2nd 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 24 in Visakhapatnam Steel Plant and 7 at Mines of Visakhapatnam Steel
Plant. The names and the year of registration are given below.

50
 LIST OF TRADE UNIONS IN VSP
Sl.No. NAME OF THE UNION
1. VISHAKHA STEEL EMPLOYEES CONGRESS (INTUC)
2. VISHAKHA STEEL WORKERS’ UNION
3. STEEL PLANT EMPLOYEES UNION (CITU)
4. VISHAKHA STEEL MAZDOOR SANGH
5. VISHAKHA STEEL EMPLOYEES UNION
6. VISHAKHA UKKU SHRAMIKA SANGH
7. VISHAKHA STEEL STAFF & WORKERS UNION (AICTU)
8. VISHAKHA STEEL PROGRESSIVE EMPLOYEES UNION
9. UNION OF STEEL EMPLOYEES
10. DEMOCRATIC STEEL EMPLOYEES UNION (HMS)
11. RASHTRIYA ISPAT MAZDOOR SANGH (BMS)
12. CONGRESS OF VISHAKHA STEEL WORKERS
13. UNITED STEEL EMPLOYEES UNION (DITU)
14. VISHAKHA STEEL PLANT WORKERS & EMPLOYEES
UNION
15. NATIONAL TRAD E UNION OF RE-UNITED STEEL
EMPLOYEES
16. THE GREATER VISAKHAPATNAM UKKU KARMAGARA
EMPLOYEES’ UNION
17. STEEL PLANT EMPLOYEES ASSOCIATION (JMS)
18. TELUGU NADU STEEL EMPLOYEES COUNCIL (TNTUC)
19. ANDHRA NADU VISHAKHA STEEL EMPLOYEES UNION
20. REPUBLIC STEEL EMPLOYEES UNION
21. VISHAKHA STEEL JANASHAKTI MAZDOOR SABHA
22. HIND MAZDOOR STEEL EMPLOYEES UNION(HMS)
23. VISAKHA UKKU KARMAGARAM EMPLOYEE UNION
24. YSR STEEL EMPLOYEE CONGRESS UNION

51
LIST OF TRADE UNIONS AT MINES OF VISAKHAPATNAM
STEEL PLANT

Sl.No. Name of the Trade Union

At Jaggayyapeta Lime Stone Mines

1. VSP Mines Employees Union

2. VSP Mines Staff & Workers Union (INTUC)

At Madharam Dolomite Mines

1. Visakhapatnam Steel Plant Workers Union

2. Rashtriya Ispat Mines Employees Union (AITUC)

LIST OF THE UNIONS ELECTED AT VSP

Year Name of the Union Affiliation

1985 Vishakha Steel Plant Employees’ Union INTUC

1988 Vishakha Steel Workers’ Union AITUC

1991 Steel Plant Employees’ Union CITU

1993 Vishakha Steel Employees’ Congress NONE

1995 Steel Plant Employees’ Union CITU

1998 Vishakha Steel Workers’ Union AITUC

2001 Vishakha Steel Workers’ Union AITUC

2003 Vishakha Steel Employees’ Congress INTUC

2005 Vishakha Steel Employees’ Congress INTUC

2008 Vishakha Steel Workers’ Union AITUC

52
  NOTE:

 Actually elections were held at 2008 a progressive front consisted (9 unions)

got majority of votes under a progressive front got elected. They got the
recognatization
 Again in the year 2010, May. Again elections were held same progressive got
majority votes but an independent union CVSW (congress of Vishakha Steel
Workers) approach Honble High Court of A.P. and got a stay over the
elections
 So as a result the recognazation letter was not issued for the period. How ever
since the High Court, vacated the case according recognization for a period of
2 years has been issued in the month of April 2012.
 Again the INTUC union filed a case in the High Court for conducting fresh
elections for the recognization union.

STATEMENT SHOWING POLLING DETAILS

OF RINL/VSP UNION ELECTIONS
HELD ON 01-03-2008

Total votes---11,193
Votes polled---10, 549
Vishakha steel workers union---6, 597(59%)
Vishakha steel employees union (INTUC) ---4,361 (39%)
Republic steel employees union---133
Rashtriya Ispat mazdoor sangh (BMS) ---62
Steel plant employees union (CITU) ---12
United steel employees union (DITU)---5
Invalid---23

53
 THEORITICAL FRAME WORK

“A trade union is a combination of persons. Whether temporary or permanent,

primarily for the purpose of regulating the relations between workers and employers
or between workers for imposing restrictive conditions on the conduct of any trade or
business and includes the federations of two or more trade unions as per Sec. 2 (6)
Trade Unions Act, 1926.

“A Trade Union is an organisation of workers, acting collectively, who seek to protect

and promote their mutual interests through collective bargaining”.

OBJECTIVES:

Following are the objectives of trade unions:

1. Ensure Security of Workers:
This involves continued employment of workers, prevent retrenchment, lay off or
lock-outs. Restrict application of “fire” or dismissal or discharge and VRS.

2. Obtain Better Economic Returns:

This involves wages hike at periodic intervals, bonus at higher rate, other admissible
allowances, subsidized canteen and transport facilities.

3. Secure Power To Influence Management:

This involves workers’ participation in management, decision making, role of union
in policy decisions affecting workers, and staff members.

4. Secure Power To Influence Government:

This involves influence on government to pass labour legislation which improves
working conditions, safety, welfare, security and retirement benefits of workers and
their dependents, seek redressal of grievances as and when needed.

54
 FUNCTIONS OF TRADE UNIONS
Some of the most important functions of the trade union are as follows: i. Increasing
Co-operation and Well-being among Workers ii. Securing Facilities for Workers iii.
Establishing Contacts between the Workers and the Employers iv. Trade Unions
working for the Progress of the Employees v. Safeguarding the Interests of the
Workers vi. Provision of Labor Welfare.

I. INCREASING CO-OPERATION AND WELL-BEING AMONG WORKERS:

The modern industry is complex and demands specialization in jobs. This results in
extreme division of labor, which leads to the growth of individualism and
development of impersonal and formal relationships. There is no common unifying
bond among the workers.

It is in this context that the trade unions come into the picture and they promote
friendliness and unity among the workers. Besides this, the trade unions also discuss
the problems, which are common to all the workers. It is a platform where workers
come together and know each other. The trade unions also provide some kind of
entertainment and relaxation to the workers.

II. SECURING FACILITIES FOR WORKERS:

Most of the industrialists are not very keen on providing the facilities and proper
working conditions to the workers. They are more interested in getting their work
done to the maximum extent. In such conditions, trade unions fight on behalf of the
workers and see that the facilities have been provided by the management.

III. ESTABLISHING CONTACTS BETWEEN THE WORKERS AND THE

EMPLOYERS:
In present days, there are many industries, which have grown into giants. A single
unit in a particular industry may employ hundreds of employees. Many times a
worker or employee may not have a chance to see their managers. In this situation, the
workers are not able to express their grievances before their employers, and even the
management does not know the difficulties faced by the workers.

55
The trade unions play an important role in bringing to the notice of the employers the
difficulties and grievances of the employees. They try to arrange face-to-face
meetings and thus try to establish contacts between the employees and the employers.

IV. TRADE UNIONS WORKING FOR THE PROGRESS OF THE EMPLOYEES:

The trade unions try to improve the economic conditions of the workers by
representing their cases to the employers and try to get adequate bonus to the workers.

V. SAFEGUARDING THE INTERESTS OF THE WORKERS:

Most of the industries try to exploit the workers to the maximum. They do not provide
any benefits such as increasing their wages, granting sick leaves, giving compensation
in case of accidents, etc. The workers are not made permanent even after many years
of service and in some cases they are removed from service summarily. The trade
unions provide security to the employees in such situations.

VI. PROVISION OF LABOR WELFARE:

The economic conditions of the industrial workers in India are very poor. The
standard of living is very low. A majority of industrial workers in India are illiterate
or semi-literate. It is the responsibility of the trade unions to get them proper housing
facilities and promote the socio-economic welfare of the laborers. The trade unions
also try to arrange educational facilities for the children of the workers.

OTHER FUNCTIONS:
(i) To secure fair wages to workers. (ii) To safeguard security of tenure and improve
conditions of service.

(iii) To enlarge opportunities for promotion and training.

(iv) To improve working and living conditions.

(v) To provide for educational, cultural and recreational facilities.

(vi) To co-operate in and facilitate technological advance by broadening the

understanding of workers on its underlying issues.

(vii) To promote identity of interests of workers with their industry.

56
(viii) To offer responsive co-operation in improving levels of production and
productivity, discipline and high standards of quality and

(ix) To promote individual and collective welfare.

TRADE UNION AS AN ORGANISATION:

Most of the workers are members of any one of the trade unions.

There are many reasons of membership and some of which are given below:
(a) Security of employment and protection against calamity of accident, death and
secure social security cover after retirement.

(b) Meeting companionship and affiliation need and improve one’s influence with
management.

(c) To get a common platform—to air one’s views, aims ideas and feelings and obtain
recognition and status among fellow workers.

(d) Make use of the “principle of unity” for the purpose of securing good working
conditions, high economic compensations, better career prospects and welfare needs.

(e) Restrict management actions which are against the interest of workers.

FORMATION AND REGISTRATION OF TRADE UNION

The following steps are involved in the registration of trade union:

(A) APPOINTMENT OF REGISTRARS:

The appropriate government shall appoint a person to be the registrar of trade unions
for each state. The appropriate government may appoint as many additional and
deputy registrars of trade unions as it thinks fit for the purpose of exercising and
discharging under the superintendence and direction of the registrar.
Such powers and functions of the registrar under this Act as it may, by order, specify
and define the local limits within which any such additional or deputy registrar shall
exercise and discharge the powers and functions so specified.

57
(B) MODE OF REGISTRATION:
Any seven or more members of a trade union may, by subscribing their names to the
rules of the trade union and by otherwise complying with the provision of this Act
with respect to registration, apply for registration of the trade union under this Act.
Where an application has been made under subsection (i) for the registration of a trade
union, such application shall not be deemed to have become invalid merely by reason
of the fact that, at any time after the date of the application, but before the registration
of the trade union, some of the applicants, but not exceeding half of the total number
of persons who made the application, have ceased to be members of the trade union or
have given notice in writing to the registrar dissociating themselves from the
application.

(C) APPLICATION FOR REGISTRATION:

(i) Every application for registration of a trade union shall be made to the registrar and
shall be accompanied by a copy of the rules of the trade union and a statement of the
following particulars, namely—

1. The names, occupations and addresses of the members making application.

2. The name of the trade union and the address of its head office.

3. The titles, names, age, addresses and occupations of the office bearers of the trade
union.

(ii) Where a trade union has been in existence for more than one year before the
making of an application for its registration, these shall be delivered to the registrar,
together with the application, a general statement of the assets and liabilities of the
trade union prepared in such form and containing such particulars as may be
prescribed.

(D) PROVISIONS TO BE CONTAINED IN THE RULES OF A TRADE

UNION:
A trade union shall not be entitled to registration under this Act, unless the executive
thereof is constituted in accordance with the provisions of this Act.

58
(E) POWER TO CALL FOR FURTHER PARTICULARS AND TO REQUIRE
ALTERATIONS OF NAMES:
(i) The registrar may call for further information or the purpose of satisfying himself
that any application complies with the provisions of Section 5, or that the trade union
is entitled to registration under Section 6, and may refuse to register the trade union
until such information is supplied.

(ii) If the name under which a trade union is proposed to be registered is identical with
that by which any other existing trade union has been registered or, in the opinion of
the registrar, so nearly resembles such name as to be likely to deceive the public or
the members of either trade union, the registrar shall require the persons applying for
registration to alter the name of the trade union stated in the application, and shall
refuse to register the union until such alteration has been made.

(F) REGISTRATION:
The registrar, on being satisfied that the trade union has complied with all the
requirements of the Act in regard to registration shall register the trade union by
entering in a register, to be maintained in such form as may be prescribed, the
particulars relating to the trade union contained in the statement accompanying the
application for registration.

(G) CERTIFICATE OF REGISTRATION:

The registrar, on registering a trade union under section and, shall issue a certificate of
registration in the prescribed form which shall be conclusive evidence that the trade
union has been duly registered under this Act.

(H) CANCELLATION OF REGISTRATION:

A certificate of registration of a trade union may be withdrawn or cancelled by the
registrar on the application of the trade union to be verified in such manner as may be
prescribed in if the registrar is satisfied that the certificate has been obtained by fraud
or mistake or that the trade union has ceased to exist.

It has to provide not less than two months’ previous notice in writing specifying the
ground on which it is proposed to withdraw or cancel the certificate shall be given by

59
the registrar to the trade union before the certificate is withdrawn or cancelled
otherwise than on the application of the trade union.

(I) REGISTERED OFFICE:

All communications and notices to a registered trade union may be addressed to its
registered office. Notice of any change in the address of the head office shall be given
within fourteen days of such change to the registrar in writing, and the changed
address shall be recorded in the register referred to in Section-8 of the Companies
Act.

(J) INCORPORATION OF REGISTERED TRADE UNION:

Every registered trade union shall be a body corporate by the name under which it is
registered and shall have perpetual succession and a common seal with power to
acquire and hold both movable and immovable property and to contract, and shall by
the said name sue and be sued.

RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

1. OBJECTS ON WHICH GENERAL FUNDS MAY BE SPENT:

The general funds of a registered trade union shall not be spent on any other objects
than the payment of salaries, allowances and expenses to the office bearers of the
trade unions; expenses for the administration of the trade union; the presentation or
defiance of any legal proceeding to which the trade union of any member thereof is a
party; the conduct of trade disputes and compensation of members for loss arising out
of trade disputes; provision of education, social or religious benefits for members;
upkeep of a periodical published.

2. CONSTITUTION OF A SEPARATE FUND FOR POLITICAL PURPOSES:

A registered trade union may constitute a separate fund, from contributions separately
levied for or made to that fund, from which payments may be made for the promotion
of the civic and political interests of its members, in furtherance of any of the objects
such as the payment of any expenses incurred, either directly or indirectly; the holding
of any meeting or the distribution of any literature/documents in support of any such
candidate; the registration of electors of the selection of a candidate for any legislative

60
body constituted under or for any local authority; the registration of electors or the
selection of a candidate for any legislative body constituted under/or for any local
authority; holding of political meetings of any kind.

3. CRIMINAL CONSPIRACY IN TRADE DISPUTES:

No office bearer or member of a registered trade union shall be liable to punishment
under sub-section (2) of Section 120 B of the Indian Penal Code, 1860 in respect of
any agreement made between the members for the purpose of furthering any such
object of the trade union as is specified in section its unless the agreement is an
agreement to commit an offence.

4. IMMUNITY FROM CIVIL SUIT IN CERTAIN CASES:

(i) No suit or other legal proceeding shall be maintainable in any civil court against
any registered trade union or any office bearer or member thereof in respect of any act
done in contemplation or furtherance of a trade dispute to which a member of the
trade union is a party on the ground only that such act induces some other person to
break a contract of employment, or that is in interference with the trade, business or
employment of some other person or with the right of some other person to dispose of
his capital or of his labour as he wills.

A registered trade union shall not be liable in any suit or other legal proceeding in any
civil court in respect of any fortuitous act done in contemplation or furtherance of a
trade dispute by an agent of the trade union if it is proved that such person acted
without the knowledge of, or contrary to express instructions given by the executive
of the trade unions.

5. ENFORCEABILITY OF AGREEMENTS:
Notwithstanding anything contained in any other law for the time being in force, an
agreement between the members of a registered trade union shall not be void or
voidable merely by reason of the fact that any to the subjects of the agreement are in
restraint of the trade.

6. RIGHT TO INSPECT BOOKS OF TRADE UNIONS:

61
The account books of a registered trade union and the list of members thereof shall be
open to inspection by an office bearer or member of the trade union at such times as
may be provided for in the rules of the trade union.

7. RIGHT OF MINORS TO MEMBERSHIP OF TRADE UNIONS:

Any person who has attained the age of 18 years may be a member of a registered
trade union subject to any rules of the trade union to the contrary, and may subject as
aforesaid, enjoy all the rights of a member and execute all instruments and give all
acquittances necessary to be executed or given under the rules.

8. EFFECTS OF CHANGE OF NAME AND OF AMALGAMATION:

The change in the name of a registered trade union shall not affect any rights or
obligations of the trade union or render defective any legal proceeding by or against
the trade union. An amalgamation of 2 or more registered trade unions shall not
prejudice any right of any of such trade unions or any right of a creditor of any of
them.

SHORTCOMINGS OF TRADE UNIONS

Trade union movement in our country suffers from the following weaknesses:

1. UNEVEN GROWTH:
Trade unions are concentrated in large scale industry sector and in big industrial
centers. There is very little trade union activity in small sector, agricultural labour and
domestic sector. Trade unionism has touched only a portion of the working class in
India.

2. SMALL SIZE:
Most of the unions have low membership though the number of unions and union
membership are increasing, average membership is inadequate.

3. WEAK FINANCIAL POSITION:

The average yearly income of unions is very low and inadequate. The subscription
rates are low and many members do not pay the subscription in time. Due to their
financial weakness, most of the unions are not in a position to undertake welfare
programmes for workers.

62
4. POLITICAL LEADERSHIP:
Trade unions are under the leadership and control of political parties and outsiders.
Politicians exploit unions and workers for their personal and political gains. Thus, the
political leadership is very harmful to the trade union movement in India.

5. MULTIPLICITY OF UNIONS:
There exist several unions in the same establishment or industry. The existence of
rival unions with conflicting ideology is greatly responsible for unhealthy growth of
trade union movement. In some cases employers encourage split in unions to
undermine their bargaining power.

6. PROBLEM OF RECOGNITION:
Employers are under no obligation to give recognition to any union.

7. ABSENCE OF PAID OFFICE-BEARERS:

Most of the unions do not have Hill-time paid office-bearers. Union activists working
on honorary basis devote only limited time and energy to union activities. Union
officers lack adequate knowledge and skill due to lack of proper training, weak
financial position and political leadership are the main reasons for this state of affairs.

8. APATHY OF MEMBERS:
Majority of workers do not take keen interest in union activities. The attendance at the
general meetings of unions is very poor.

9. OPPOSITION FROM EMPLOYERS:

Trade unions in India have to face opposition from employers. Many employers try to
intimidate or victimise labour leaders, start rival union and bribe union officials.

10. INTER-UNION RIVALRY:

Multiple unions create rivalry. Unions try to play down each other in order to gain
greater influence among workers. Employers take advantage of infighting. Inter-union

63
rivalry weakens the power of collective bargaining and reduces the effectiveness of
workers in securing their legitimate rights.

EMPLOYER’S ORGANISATIONS:
Under the trade union Act the term trade unions also includes employer’s
organisations. But strictly speaking, an employer’s association means formal body of
employers only.

According to Mr. Naval Tata, the objectives of an employer’s association are:

(i) To promote collective bargaining.

(ii) To develop healthy and stable industrial relations.

(iii) To bring employer’s viewpoint to the notice of the Govt, and

(iv) To represent employers at national and international forums.

There are at present more than 800 registered associations of employers in India.
These are of three types:

1. Local associations to promote the interests of employers in a particular industry or

city, e.g., Indian Jute Mills Association.

2. Regional associations such as the Southern India’s Mill Owners’ Association which
serve the needs of employers in a particular region.

3. National or apex associations which co-ordinate the efforts of local and regional
associations. These are federations to which local and regional associations are
affiliated. FICCI, CII, are examples of these federations. These federations perform
several functions such as advice, education, communication, representation.

64
 ORGANISATION STRUCTURE
Organisational structure of National Trade Unions consists of 4 levels as given
below:
1. Conventions/sessions
2. General council (President, VP, Secretary-General, etc.)
3. Provincial bodies (at state level chairman, secretariats)
4. Local bodies (affiliated unions)

National convention/conferences are hold at periodic intervals, say annually or bi-

annually. This is the highest policymaking body. This is presided over by the
president of the union attended by the delegates such as chairmen of state units,
representatives of specialized services, legal experts and delegates from international
bodies and special invitees. Office bearers are also elected by this conference.
General council consists of president, vice-president, secretary and other office
bearers. It carries out policy decisions taken by convention. Various standing
committees are set up on rendering study, analysis and recommendations on various
aspects like legislative measure, Research and publications, international services etc.

State units are headed by chairman of state/regional areas. State units also liaise with
National Headquarters; keep a close watch of faithful implementation of labour
legislation and practices. It assists/influence state government to pass labour friendly
legislation and executive/administration actions.

It is also responsible for membership of various unions representing workers in

industrial undertakings (units) and/or representing trade and industrial units affiliated
to the central trade union. These state units get themselves attached to
State/Provincial/HQ/Regional unions/Units.

65
Headquarters (HQ) unions are responsible for welfare of its members and
membership drive. As bargaining agents they are involved in collective bargaining
with Central Government/ and or State government and assist passing legislative
measures.

How Trade Union Objectives are Achieved?

The objectives of a trade union are achieved by a pursuit of traditional methods.
These are:
(i) The organisation of a trade union on the basis of the craft or industry in which its
members are employed, such as general unions and professional employee’s
organisations.

(ii) Collective bargaining, which is the essence of industrial relations, for it is through
collective bargaining that the terms and conditions of employment are determined and
under which work is performed’ satisfactorily.

(iii) Grievance processing and handling procedures, under which grievances are
redressed or dealt with by a correction of situation or by channelling up of these “up
the line”.

(iv) Arbitration, by which unsettled or unresolved disputes can be settled by an

outside agency.

(v) Political pressure exercised through legislators who are capable of bringing about
changes in labour laws; and

(vi) Mutual insurance through common contributions to meet the financial needs of
workers when there are stoppages of work.

CHARACTERISTICS OF TRADE UNION

1. A union normally represents members in many companies throughout the industry
or occupation.

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2. A union is fundamentally an employer regulating device. It sharpens management
efficiency and performance while protecting the interests of the members.

3. A union is a part of the working class movement.

4. A union is a pressure organisation originating in the desire on the part of a group

with relatively little power to influence the action of a group with relatively more
power. A union is a political institution in its internal structure and procedures.

TRADE UNION MOVEMENT IN INDIA

Trade union movement in our country has a century-long history. The first quarter of
the present century saw the birth of the trade union movement, but the seeds of the
movement were sown much earlier.

In the twenties, soon after the World War I, working class in our country realised the
effectiveness of labour strike as a means of obtaining concessions, higher wages and
better working conditions. Many strikes were declared consequently and most of them
were successful. This success led to the formation of several unions.

The AITUC was set up in 1920 with the objectives of representing worker’s interests,
to co-ordinate the activities of all labour organisations in the country, and to spread
the message about the need for union movement. Hundreds of unions came into being
in big and small industries. Their number, as well as membership, increased
considerably.

A landmark in the history of labour movement was the enactment of the Trade Unions
Act 1926. The Act gave a legal status to the registered trade unions and conferred on
them and their members a measure of immunity from civil suits and criminal
presentation. Registration of union gave them respectability before employers and the
general public.

Towards the end of 1920s, there was a split in the union movement, the split being
caused by the leader’s ideological differences. The AITUC was captured by the
communists. The moderates formed a new organisation, called All India Trade Union

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Federation. Ideological differences and splits had their effect on strikes too. Majority
of the strikes failed.

Unlike 1920s, the 1930s were not favourable to the trade union movement. The
presentation of the communists involved in the Meerut conspiracy case and the failure
of the Bombay textile strike of 1929 brought a lull in trade union activities.

Economic depression of the period also added to the dull phase of union movement.
Retrenchments and strikes were common, the latter being mostly ineffective. There
were further splits in the movement, but just before the World War II some unity was
achieved.

The unity was shattered during the World War II because of ideological differences
and mounting cost of living. Industrial unrest increased and the Govt, banned strikes
and lockouts invoking the Defence of India Rules. Luckily workers realized the need
for an organized movement to secure relief. This realisation led to an increase in the
number of unions.

The aftermath of independence was not good for unions. The hopes of workers to
secure better facilities and wages from the national government were not realized.
There was large scale unrest and strikes and lock outs multiplied.

The disunity in the trade union ranks was aggravated by the starting of three central
labour organisations, namely the INTUC in 1947, the Hind Mazdoor Sabha (HMS) in
1948, and the United Trade Union Congress (UTUC) in 1949.

As years went by, more unions and central organisations came into being the
movement became deeply entrenched as of today, there are 50,000 registered unions
and most of them are affiliated to one or the other central trade union.

TRADE UNION FORMATION

Trade unions are formed on different criteria.

Some of the criteria are:

(1) Craft basis, (2) Industrial Unions, (3) General grouping based on place and (4)
Federations.
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1. CRAFT UNIONS:
In this organisation the labour class is grouped based on particular trade or
occupation. This category is mainly amongst the white collared employees. The
measures are mostly in horizontal system and craft conscious rather than class
conscious.

This will have lot of commonality in thinking and approach to problems resolution.
The bank employees’ union, doctors’ union, lawyers’ association, teachers’
association come under this category.

2. INDUSTRIAL UNIONS:
A particular category of industry will have their own unions. All crafts and trades
coming under that industry are part of the union. Textile mill unions, steel industry
unions, mill mazdoor sangh, grini kamgar unions are some of the examples of
industrial unions in India.

They form a strong force in collective bargaining. They cover all welfare of similar
industry workers in a city or industrial town. Industrial unions are more vocal, volatile
and indulge in agitation and strikes. Similarly these industries face more lockouts and
arbitration for disputes redressal.

3. GENERAL UNION:
This is a conglomerate group of different industry employees forming a union. This
happens normally in industrial towns, ancillary units, and SSI units in a city or
suburb. Examples are Peenya industrial workers’ union, Thane industry employees’
unions and Jamshedpur labour union.

4. FEDERATIONS:
These are apex bodies at national level. All trade unions like craft union, industrial
unions and general union become members of federations to have bigger identity.
Central trade unions as federations help smaller unions and support at national level to
address their cause.

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In addition to above there are unions like All India Bank Employees’ Association,
National Federation of Indian Railway- men, All India Port and Dock Workers’
Federations, National Federation of Post & Telegraph Workers, All India Mine
Workers Federation and Indian Federation of Working Journalists.

LABOUR STRIKES IN INDIA:

There used to be various labour strikes in various places of India during the period of
1960 to 1980. Nowadays they have reduced drastically. Strikes used to take place
mainly for disputes or disagreements on (a) Bonus amount, (b) incentive schemes, (c)
suspensions, layout and dismissal and (d) relocation of factories and or employees.
The major causes however have seen related to monetary factors. There are examples
of more often strikes in textile mills of Bombay and Ahmedabad than in any other
industries.

Learning from the example of textile mill strike failure in Bombay there are no major
strikes anywhere in India since then. The moral of the story is “organisations can pay

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more only if revenue and profits rise.” Both workers and management must follow
practical and workable equations and avoid opposing just for opposing purpose.

NO UNIONS IS ITES SECTORS:

It is interesting to observe that Indian work environment drastically changed in last
two decades. It has improved both within law limits and by violating law limits.

Examples are as under:

1. Factories Act 1948 forbids lady employees working after sunset. However in IT
companies and BPO sector lady employees work night times without complaining.
None has opposed this so far to avoid unemployment.

2. In earlier decades employees used to claim OT (over time) payments for working
extra hours. This payment was twice or one and half time the normal rates. These
days this trend has stopped and employees do not claim OT.

Above situation is partly due to the fact that none of the ITES companies have trade
unions. This has happened as the company has only white collared staff, engineers
and executives. A unique situation had developed where employers offer higher salary
to deserving cases and drastically remove non-performers they have no fear of union
interference or labour court cases.

Even in General engineering industries the unionism and strikes have reduced
substantially after globalisation. Survival of the fittest and market competition has
opened the eyes and ears of employees and failure of Bombay textile mills’ labour
strike has been a very big warning to union leaders.

JAPANESE PRACTICE:
In India mode of strike is to stop working. In Japan the mode of protest is to wear a
black badge and work extra hours each day. This attracts the attention of management
to sit and discuss the problems of workers. Perhaps this speaks of the socio- cultural
values and enlightened approach of their leaders.

This is comparable to Mahatma Gandhi’s non-violent protest against the British rule.
The Japanese owners/executives feel hurt of workers’ problems and try to solve them.

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 DATA ANALYSIS AND INTERPRETATION

After collecting the requisite secondary data relevant for the purpose of this
project work we have collected primary data on the subject through a sample survey.
Thus a suitable questionnaire was designed to obtain the views/perceptions of
respondents on relevant aspects. A copy is placed at annexure.

Methodology:

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 In order to carry out the survey the random sampling method was adopted as
the target was to interview 100 employees from all the departments. The survey was
conducted by meeting the respondents personally at their convenience and choice.
Accordingly most of the respondents preferred their work place as they felt
comfortable to fill the questionnaire. The questionnaires were distributed among the
respondents and it was collected then and there itself.
The Primary data was collected by meeting 100 employees from various
departments. Since RINL/VSP is having different departments widely scattered it is
proposed to conduct the survey in only core production departments. The respondents
were identified on random basis in each department, as the availability of the
respondents was not constant at each level.

Questionnaire design

The questionnaire was designed in such a way that the first five questions are
pertaining to the personal data which are in agreed nature such as designation,
department etc.
The quantitative data was designed with forced choices of 5 scales method i.e.
0-5 level like totally agree, agree, cannot say, disagree and totally disagree. The
qualitative data was designed by administering the open-ended questions with the
ranking method so as to ascertain the quality information from the survey findings.

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 1. Views of employees on main problem with Trade Unions

Inter Union Political Outside

Others
Rivalry Affiliation leadership

Executives 57.5% 22.5% 10% 10%

Non-Executives 55% 22.5% 10% 12.5%

Trade Unions 55% 20% 10% 15%

60.00%

50.00%

40.00%

30.00% Executives
Non-Executives
20.00% Trade Unions

10.00%

0.00%
Inter Union Political Out side Others
Rivalry Affiliation leadership

INTERPRETATION
From the above graph, 57.5% of the Executives say that Inter Union
Rivalry is the main problem with Trade Unions. 22.5% of them say that Political
Affiliation is the main problem.10% of them says that Outside Leadership is the main
problem while 10% say that others are the main problem.

55% of the Non - Executives say that Inter Union Rivalry is the main
problem with Trade Unions. 22.5% of them say that Political Affiliation is the main
problem.10% of them says that Outside Leadership is the main problem while 12.5%
say that others are the main problem.

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 2. Perception of employees on the workers and Trade Unions about
extending their co-operation for redressal of Grievances.

Yes No
Executives 82.5% 17.5%

Non-Executives 80% 20%

Trade Unions 70% 30%

100.00%
80.00%
60.00% Executives

40.00% Non-Executives
Trade Unions
20.00%
0.00%
Yes No

INTERPRETATION
From the above graph, 82.5% of the Executives feel that Workers and
Trade Unions are extending their Co-operation for redressal of Grievances while
17.5% of them feel that they are not extending.
80% of the Non - Executives feel that Workers and Trade Unions are
extending their Co-operation for redressal of Grievances while 20% of them feel that
they are not extending.

70% of the Trade Unions feel that Workers and Trade Unions are
extending their Co-operation for redressal of Grievances while 30% of them feel that
they are not extending.

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 3. Perception of employees on the attitude of other registered Unions
towards the Collective Bargaining agreements reached with the
Recognized Union.
Positive Negative
Executives 55% 45%

Non-Executives 50% 50%

Trade Unions 60% 40%

60%
50%
40%
Executives
30%
Non-Executives
20%
Trade Unions
10%
0%
Yes No

INTERPRETATION

From the above graph, 55% of the Executives feel that the attitude of other
registered Unions towards the Collective Bargaining agreements reached with the
Recognized Union are positive while 45% of them feel that it is negative.

50% of the Non - Executives feel that the attitude of other registered
Unions towards the Collective Bargaining agreements reached with the Recognized
Union are positive while 50% of them feel that it is negative.

60% of the Trade Unions feel that the attitude of other registered Unions
towards the Collective Bargaining agreements reached with the Recognized Union are
positive while 40% of them feel that it is negative.

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 4. If there is any problem, the views of employees on whom they approach
first

Immediate Departmental
Trade Unions Co-Worker
Superior Head

Executives 75% 22.5% 0% 2.5%

Non-Executives 70% 12.5% 5% 12.5%

Trade Unions 60% 25% 0% 15%

80%

70%

60%

50%

40% Executives

Non-Executives

30% Trade Unions

20%

10%

0%
Immediate Departmental Trade Unions Co-Worker
Superior Head

INTERPRETATION

From the above graph, 75% of the Executives say that they approach
Immediate Superior if there is any problem. 22.5% say that they approach
Departmental Head and 2.5% say that they approach Co-Worker.

70% of the Non - Executives say that they approach Immediate Superior if
there is any problem. 12.5% say that they approach Departmental Head. 5% say that
they approach Trade Unions and 12.5% say that they approach Co-Worker.

60% of the Trade Unions say that they approach Immediate Superior if
there is any problem. 25% say that they approach Departmental Head and 15% say
that they approach Co-Worker.

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 5. Setting the grievances / disputes of individuals

Fairly
Successful Not Successful
successful

Executives 27.5% 60% 12.5%

22.5% 57.5% 20%

Non-Executives

55% 30% 15%

Trade Unions

60.00%

50.00%

40.00%

Executives
30.00% Non-Executives
Trade Unions
20.00%

10.00%

0.00%
Fairly successful Successful Not Successful

INTERPRETATION
From the above graph, 27.5% of Executives say that Trade Unions are
fairly successful in settling the Grievances / Disputes of individuals. 60% of them say
that they are successful and remaining 12.5% say that they are not successful.
22.5% of Non - Executives say that Trade Unions are fairly successful in
settling the Grievances / Disputes of individuals. 57.5% of them say that they are
successful and remaining 20% say that they are not successful.
55% of Trade Unions say that Trade Unions are fairly successful in settling the
Grievances / Disputes of individuals. 30% of them say that they are successful and
remaining 15% say that they are not successful

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 6. Satisfaction of Employees on Safety Measures and Compensation
Provided to them

Yes No
Executives 97.5% 2.5%

Non-Executives 90% 10%

Trade Unions 100% 0%

100.00%
80.00%
60.00% Executives

40.00% Non-Executives
Trade Unions
20.00%

0.00%
Yes No

INTERPRETATION
From the above graph, 97.5% of the Executives are satisfied with the
Safety measures and compensation provided to them while 2.5% are not satisfied.
90% of the Non - Executives are satisfied with the Safety measures and
compensation provided to them while 10% are not satisfied.
100% of the Trade Unions are satisfied with the Safety measures and compensation
provided to them.

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 7. Effectiveness of JCM (Joint Consultative Machinery) in preventing the
disputes

Yes No
Executives 77.5% 22.5%

Non-Executives 72.5% 27.5%

Trade Unions 75% 25%

80.00%

60.00%
Executives
40.00%
Non-Executives

20.00% Trade Unions

0.00%
Yes No

INTERPRETATION

From the above graph, 77.5% of the Executives feel that Joint Consultative
Machinery (JCM) is effective in preventing the Disputes while 22.5% feel that it is
not effective.

72.5% of the Non - Executives feel that Joint Consultative Machinery

(JCM) is effective in preventing the Disputes while 27.5% feel that it is not effective.

75% of the Trade Unions feel that Joint Consultative Machinery (JCM) is
effective in preventing the Disputes while 25% feel that it is not effective

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 8. Views of the employees on causes for disharmony/ grievance

Management Welfare
Trade Unions Others
attitude Amenities

Executives 20% 35% 22.5% 22.5%

Non-Executives 12.5% 40% 32.5% 15%

Trade Unions 25% 30% 25% 20%

40%

35%

30%

25%

Executives
20%
Non-Executives
Trade Unions
15%

10%

5%

0%
Management Trade Unions Welfare Amenities Others
attitude

INTERPRETATION
From the above graph, 20% of the Executives feel that Management
attitude is the cause for disharmony / Grievance. 35% of them feel that Trade Unions
are the cause. 22.5% feel that Welfare Amenities are the cause while 22.5% feel that
other reasons are the cause.
12.5% of the Non - Executives feel that Management attitude is the cause
for disharmony / Grievance. 40% of them feel that Trade Unions are the cause.
32.5% feel that Welfare Amenities are the cause while 15% feel that other reasons are
the cause.
25% of the Trade Unions feel that Management attitude is the cause for
disharmony / Grievance. 30% of them feel that Trade Unions are the cause. 25% feel
that Welfare Amenities are the cause while 20% feel that other reasons are the cause.

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 9. Satisfaction of Employees on Productivity Linked union relations in vsp

Yes No

Executives 97.5% 2.5%

Non-Executives 90% 10%

Trade Unions 85% 15%

100.00%
80.00%
60.00% Executives

40.00% Non-Executives
Trade Unions
20.00%

0.00%
Yes No

INTERPRETATION

From the above graph, 97.5% of the Executives are satisfied with the
existing Productivity Linked Incentive Scheme while 2.5% are not satisfied.

90% of the Non - Executives are satisfied with the existing Productivity
Linked Incentive Scheme while 10% are not satisfied.

85% of the Trade Unions are satisfied with the existing Productivity
Linked Incentive Scheme while 15% are not satisfied.

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 10. Perception of Employees on strict rules and maintaining is necessary by
trade union to Prevent absenteeism in vsp

Yes No

Executives 82.5% 17.5%

Non-Executives 75% 25%

Trade Unions 90% 10%

100.00%
80.00%
60.00% Executives

40.00% Non-Executives
Trade Unions
20.00%
0.00%
Yes No

INTERPRETATION

From the above graph, 82.5% of the Executives say that Daily Attendance
Recording System is useful in Preventing Absenteeism while 17.5% say that it is not
useful.

75% of the Non - Executives say that Daily Attendance Recording System
is useful in Preventing Absenteeism while 25% say that it is not useful

90% of the Trade Unions say that Daily Attendance Recording System is
useful in Preventing Absenteeism while 10% say that it is not useful.

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Open question

This is the last question of the questionnaire through which we have collected some
suggestions from the employees i.e. both from the executive and non-executive
groups regarding the changes to be made by the management for having better IR
climate in VSP. The suggestions given by the employees are as follows:

Suggestions:

 Co-operation between management and unions can sort out IR problem in VSP.
 For anything, organization interest is the key.
 The employees should maintain good relations with the management.
 Collective Bargaining is required for the settlement of the various issues.
 Multiplicity of trade unions should be discouraged.
 Workers Participation in the management will improve productivity.
 Strengthening of Workers – Management relationship is essential for the
successful IR.
 Any issue that arises should be discussed across the table before it is taken to the
management.
 When the organization believes that their success lies in their human capital, there
will not be any IR situation in the organization.
 Structural meeting in a systematic way will help to improve IR in VSP.

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 FINDINGS
According to the opinion of various respondents in VSP it was found that
majority of employees are satisfied with the existing IR scenario in VSP. As we all
know that human wants are unlimited there do few employees who expressed their
dissatisfaction with the various IR practices exist in VSP?

The following are the findings of my study:

 The safety measures and welfare measures taken by the management of VSP
are good.
 All the employees of the organization are satisfied with the disciplinary
procedures and working conditions.
 Grievance redressal forum is working very well.
 Management attitude is positive towards the settlement of grievances, because
all the grievances are settled at the initial stages (i.e., at unit level)
 Understanding between the superiors and subordinates is formal and cordial.
 Political affiliation and Inter-union rivalry are the main cause for the disputes
between trade unions.
 Some of the employees are not satisfied with the functioning of Trade Unions.
 The employees are very much satisfied with the participative management
prevailing in VSP.
 Most of the employees are satisfied with the salary administration being
implemented in VSP.

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 SUGGESTIONS

 It is better that Trade Unions should not have affiliation with Political parties.
 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.
 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.
 To discourage the multiplication of trade unions it should discouraged orr
restricted at the stage of registration itself by the Registering Authority.
 Leaders development training programmes should be conducted to develop the
leadership skills.

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 BIBLIOGRAPHY

BOOKS
 Management of human resources by L.M. PRASAD
 Human resource management by DR.P.SUBBA RAO
 Industrial relations by DR.P.SUBBA RAO
 Union management relations and globalization by C.S.VENKATA RATNAM
 Spectrum of industrial relations by BAGARAM TULPULE
 Industrial relations in India and workers involvement in management by
V.P.MICHAEL

WEBSITES
 vizagsteel.com
 CiteHR.com

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