Trade Union and Industrial Relations

Assignment Submission
On
Industrial Relations in Cummins India Ltd , Pune

Submitted To
Prof. Vijay Adkar (ISB&M, Pune)

Submitted By:
Prateeksha Singh
M20203810

Industrial Relations in Cummins India Ltd , Pune

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An industrial relations framework covers the full spectrum of employee-employee and employee-
employer relationships that are handled by confrontation and cooperation. It covers topics such as
compensation, hours of work, leave with pay, health and safety, disciplinary proceedings, lay-offs,
dismissals, retirements, and so on, as well as laws regulating such practises, rules governing labour
welfare, social security, and industrial relations, and issues related to staff involvement in
management, collective bargaining, and so on.

In September 2009, a 65-day strike at the Cummins plant occurred. Following that, management and
union ties were not harmonious or cooperative, but this changed after September 2010. Since 2010,
when management and the union reached a salary agreement, the working relationship has been
cordial, harmonious, and collaborative.

This case study was prepared in 2014 to understand the industrial relations after the changes done
by the management. Based on the given case study 3 different points were analysed:

1. The procedure of wage settlement process at Cummins India Limited (CIL)

2. The salient features of wage settlement agreement
3. Level of satisfaction among production associates with CIL's current welfare facilities

And based on the analysis recommendations or suggestions for improvement in welfare facilities
provided by CIL.

To understand the scenario of wage settlement process better a flowchart was prepared

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 Wage Settlement Process Flowchart

The following is a case study of Cummins India Limited's industrial relations situation. Random
convenience sampling was used to select 50 respondents from the organisation. Several

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characteristics associated with the sample were examined based on the responses or data obtained.
These characteristics are described as below. Based on the analysis the gaps are identified and hence
recommendations are provided on those gaps.

1. Satisfaction with The Working Conditions

 Analysis - According to the survey, 56 percent of respondents said they were
generally satisfied with their working conditions.
 Recommendations – There is a scope for improvement in the working conditions for
production associates. In certain cases, safety measures can be enhanced so that
production associates feel secure in their working environment.
2. Satisfaction with Canteen Facility Provided
 Analysis – The majority of respondents (40) were pleased with the canteen service
offered, while a few (10) were only moderately pleased. However, it was discovered
that the canteen fees are higher than those in the sector, and that some
infrastructure work, such as painting and changing wash basins, is needed.
 Recommendations – The Canteen should be maintained with proper hygiene and
cleanliness along with that the charges of food should be optimal.
3. Satisfaction with Wage Increment
 Analysis – It was found that 45 respondents were satisfied with the wage increment
while only handfuls were not.
 Recommendations – The new wage increase is sufficient to keep the output
associates in a good standard of working conditions.
4. Satisfaction with Allowances
 Analysis – Majority of 40 out of 50 respondents were satisfied with the allowances
while 10 were averagely satisfied.
 Recommendations – As a result of the interview, it is recommended that the
medical allowance should be increased because the cost of medication and doctor's
services has increased.
5. Satisfaction with Retirement Benefits
 Analysis – Majority (35/50) were satisfied with the retirement benefits. Some of the
averagely happy respondents were elderly or the family's sole earner.
 Recommendations – Since the majority of respondents is pleased with their
benefits, there isn't much space to raise retirement benefits.
6. Satisfaction with Sufficient Number of Toilets
 Analysis – According to the survey, 90% of respondents were pleased with the
number of toilets available, while 10% were not. The explanation for their
frustration was discovered to be that some employees had to go to other
departments because their department lacked a toilet.
 Recommendations – It is recommended that the organization should look into this
as this is one of the important part of working environment and hence toilets to be
constructed In all departments as per convenience.
7. Satisfaction with Creche Facility
 Analysis – The majority of people (94%) were pleased with the crèche. At CIL, a new
crèche has been installed, complete with a garden and all of the requisite amenities
for the children. For others, the only source of disappointment was that if their child
became sick, he or she was not permitted to attend the crèche at that time because
other children could contract the illness, making it impossible for the ill child's
parent to handle the child without crèche.

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  Recommendations – For the part where the ill students are not allowed to
participate the management can look into methods where a child can enjoy
separately for a day or two in a quarantined space.
8. Employee Welfare Activities Improves Performance
 Analysis – Employee welfare facilities have been shown to boost the efficiency of
the majority of workers.
 Recommendations – As a result, as long as the production associates are satisfied
with the welfare facilities offered, their output will be satisfactory.
9. Satisfaction with Grievance Handling Procedure
 Analysis – The majority of respondents were pleased with the grievance resolution
process on average. According to production associates, the issues were resolved,
but not immediately.
 Recommendations – Hence it is recommended that timely grievance handling is
required.
10. Overall Satisfaction with Employee Welfare Amenities
 Analysis – The majority were satisfied with the welfare services on average, while 13
were fully satisfied.
 Recommendations –There is room for improvement in the social services offered,
such as improved retirement benefits, medical allowances, and canteen facilities,
among other things.

Overall Recommendations:

Based on the findings of the study, recommendations by the researcher are as follows:

I. Internal management should be good in order to improve the organization's working

conditions.
II. It is necessary to increase the number of toilets.
III. Because of the large number of workers, the company should launch a bus service for
them.
IV. Canteen fees are higher than those in the industry, and some infrastructure work, such
as painting and changing wash taps, is required.
V. Security measures in certain places need to be strengthened.
VI. Issues should be solved immediately by the IR department.
VII. Medical allowance must be increased.

Conclusion

On a daily basis, correspondence and meetings with union leaders and staff are held. On a weekly
and monthly basis, the management delegate and store managers meet. The industrial relations
chief holds weekly meetings and quickly addresses grievances. In addition, the senior leadership
meets with the union on a monthly basis. On a quarterly basis, the CEO of the company also
communicates the company's priorities and situations to the staff. During these sessions, the
employees' voices are captured, and issues/grievances are addressed to the best of their abilities.
Line managers and shop floor managers meet with the IR Department on a daily basis to discuss
production associate problems and communicate them to the IR Department for resolution.

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