Case Study: Bata And Its Employee Relations

Issue
Q.1. The role played by the BMU is of a destructive
nature. Comment.
Ans. Yes, I agree that role played by Bata Mazdoor Union
(BMU) is highly destructive as BATA management has failed in
their labor strategy. BMU assists with wage demands, reduced
working hours, staff participation in management, and other
financial and non-financial needs. For example, they also called
for the intervention of the West Bengal Government as they
thought the BATA authorities were doing a job of reducing
them. When a job issue with this issue is referred to
management.
BMU's lack of communication, and the rift between Bata
executives reveals their deteriorating situation with strikes,
attacks etc. Appropriately. Therefore, there is no trust between
the leader of the Bata union and the management. The Bata
Mazdoor Union (BMU) failed to bargain with the management
in right way.

Q.2. Why has maintaining good IR been a problem

for Bata? From what advice could you give them to
maintain sound IR?
Ans.
• Phasing out the welfare schemes by the management

• Management was highly suspicious of worker and their

intention. Assault on Weston added fuel to the fire.
Management became more sever with the workers.
Bata management has taken a tough stand by
diminishing erring employees in the assault case against
the chief welfare officer in 1996 and against Weston in
1998. On the other hand, trade union were demanding
reinstatement of these employees thus creating a
deadlock between the management and the unions.
• In order to maintain good Industrial Relation practice,
Bata can take the following steps:

a) Make efforts to maintain good Industrial Relations by

introducing of participative style of Management.

b) Strengthen its grievance settlement mechanism

(machinery).

c) Maintain good relationship with local government and

send signal that govt. intervention is all right but not
party to intervention.

d) Collective bargaining (a process through which

employee issue are settled through mutual
discussions and negotiations) should be practiced.