Proposition for Preliminary Rounds I

Amos Choen Ltd. is a developing automobile manufacturer in India with its factories in Dawar, a
village in Madhya Pradesh. Amos Choen is a profitable company in India. As of July 2018, it
had a market share of 30% of the Indian passenger car market. The company not only established
its name as an efficient company in the Indian market but in various other countries as well.
Amos Choen Ltd. was also known for its workforce conducive environment and the facilities
provided by it.

On 18th July 2018, Amos’s plant was hit by an accident which resulted in the death of a worker
due to electrocution and lack of timely medical attention. The family of the deceased filed a case
against the company and the court held that the company was liable to pay a sum of 10,00,000/-
to the family. Also, the company was ordered to improve the safety standards at the workplace
since such accidents were not new.

After this huge setback, ever since the company resumed its operations in 2019, it reported
losses. To reduce expenses, the company not only reduced the wages of its workers but also
dismissed many of its temporary and inefficient operatives unannounced, who were employed on
contractual basis. With the objective of improving safety standards, the company issued a
regulation on the work schedule with added other conditions imposed on the labourers. This was
opposed by most of the workers of Amos Choen as they rebutted the inadequate wages.

Due to the unceasing downfall of the company, the incentives and perks offered to its workforce
were taken away till the company reverted to its antecedent position in the market.

To escalate the situation there was another accident in the factory which led to serious injuries to
a worker named Kumar as he was struck by some moving machinery. After this accident, the
workers protested against the management of the company since they had no forum for the
redressal of grievances. The factories were closed and due to the strike the company incurred
massive losses.

Later, the Labour Union, an association for the protection of rights of workers looked into the
matter and listed all the problems at the workplace and filed a case in the court. The petition was
contested by the company and intended to resolve the matter.

The court advised them to inculcate a mediation session in order to resolve the dispute.

Happy ADR!