Management Development Institute, Gurgaon

Name of Programme:- PGDM-HRM (2021-23)

Endterm Examination, Term-II
Name of the Course: Employee Relation
Name of the course Faculty: Dr. EM Rao
Section: A

Name: Shri Prakash Tiwari Roll Number: 21PGHR011

1
Part I:

1.Ans

Social Dialogue:
1. Three principal actors in Industrial Relations – Government, employers and workers
2. Negotiations and information exchange between government, employers and workers on
issues of common interest
3. Two categories of social dialogue – Bipartite and Tripartite

Instrumentalities:

1. Respect for freedom of right and association, and collective bargaining

2. Authority at some level among all parties to conclude binding conventions
3. Strong organizations for workers and employers with knowledge and capacity to engage in
debate and discussion
4. Information sharing within and among the parties/stakeholders involved
2.Ans
Difference between Arbitration and Adjudication:

S.No Arbitration Adjudication

1. Arbitration is a private, but judicial, process
for resolving a labour dispute.
2. Arbitration is done voluntarily
Presiding officer is arbitrator
3.
4. There can be one or more than one arbitrator
appointed
5. A formal agreement signed by both parties
grants the right to proceed to arbitration.
6. No provision to appoint assessors is there in
case of arbitration
Adjudication is a legal process for resolving
labour disputes in which a judge or magistrate
examines all of the facts presented.
Adjudication is compulsary
In adjudication, judge, magistrate, or any other
appointed judicial officer presides over the
dispute
Only one presiding officer is there
The Industrial Dispute Act of 1947 gives the court
the authority to resolve the dispute.
In adjudication, assessors can be appointed in
industrial and national tribunal

 As opposed to arbitration and adjudication, conciliation is an alternative dispute resolution

method in which the parties to a dispute hire a conciliator to meet with them individually and
collectively in order to resolve the differences.
3.Ans

Lockout :

1. Lockout means the temporary closing of an area of employment, or of the suspension of work
or refusal by the employer to employ any number of person employed by him.
2. Lockout indicates the temporary closure of the place of business or place of employment and
not a closure of the Business itself.
3. A Lockout is because of the existence or apprehension of an Industrial Dispute. Lockout is
weapon of coercion in the hands of employer and is the antithesis of strike.

2
Closure:

1. A closure need not be in consequence of an industrial dispute.

2. Closure means permanent closing down of the place of employment or part thereof.
3. Closue is generally because of trade reason.

Layoff:

 Layoff is refusal, failue, inability of employer on account of shortage of coal, power, raw
material,, or breakdown of machinery or any other connected reason. This is genrally temporary
in nature and the employee-employer relation is temporarily suspended.

4.Ans

1. No person employed in a public utility service shall go on strike in breach of contract as per the
section-22 of Industrial dispute act, 1947 -
a. without giving to the employer notice of strike, as hereinafter provided, within six weeks before
striking
(b) within fourteen days of giving such notice; or
C) before the expiry of the date of strike specified in any such notice as aforesaid; or
d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after
the conclusion of such proceedings.
2) No employer carrying on any public utility service shall lock-out any of his workmen-
(a) without giving them notice of lock-out as hereinafter provided, within six weeks before locking-out; or
(b) within fourteen days of giving such notice; or
3. The notice of strike referred to in sub-section(l) shall be given by such number of persons to such
person or persons and in such manner as maybe prescribed.
4. The notice of lock-out referred to in sub-section(II) shall be given in such manner as may be
prescribed.

5.Ans

Red Hot Stove Rule, suggests that, “administering discipline is more like touching a hot stove.”
 Advance warning: To make the workmen aware that if you commits indiscipline you get
punishment just like the red-hot stove tell us that touching it will make you suffer, so don’t touch
me.
 Immediate effect: The workmen who disregards the warning and ventures to do cause
indiscipline will get the punishment immediately
 Consistency: Every time we touch the red-hot stove will give the same result without any let up.
In the same way if workers is committing any mistakes will get the punishment consistently.
 Impersonal approach:
a. It doesn’t play favorites; its functioning transcends the pairs of love and hatred, friend
and foe, etc.

3
 b. it guarantees the fundamental right to equality, more dispassionately than any court of
law does.
These four characteristics form important characteristics of any indisciplinary administration. Any laxity
on the part of management can make the whole process detriment for the overall organization and will
damage industrial relation and harmony. Even the best intended preventive measure would be rendered
meaningless in such a situation , because employees would lose confidence in management and feels that
management would not take any action.

6.Ans
LEGAL STEPS in dispute resolution:
1. Presentation of Charter of Demands: contains issues relating to wages, bonuses, working
hrs etc
2. Statement of Counter claim: negaotiation between the two parties
3. Hearing: Arbitral tribunal will hear both the parties
4. Submission of evidence
5. Final Hearing
6. Publishing Award: The decision of the tribunal is known as ‘Award’ and is binding on the
parties.
7. Enforcement of Award: The party in whose favour the award has been passed has to file for
execution or enforcement of award
7.Ans.

The differences between Settlement and Agreement are:

Settlement
Process A settlement is also a contract of
consensus between the two disputants
viz employer and workmen on the
terms and conditions of employment
brought about by conciliation or
mediation by a third person appointed
by the Government or through bi-
lateral negotiations by the disputants
themselves or collective bargaining.
Advantages Usually a third part/ Govt. is involved
in this case
Disadvantages In case of Settlement, several parties
cannot share their views or opinions.
It is less cost effective.
Agreement
An agreement is the state of harmony
of opinion or consensus between two
or more persons as to a course of
action leading to a specific result of
mutual gain or gratification. Simply
put it is a contract creating mutual
rights and obligations
Third party or Govt. may or may not be
involved.
A state whereby several parties share a
view or opinion; the state of not
contradicting one another.
It is more cost effective.

8.Ans
1. Registered trade union will have perpetual succession, it will survive even after death of
member.
2. Every registered trade union will have common seal.
3. Every registered trade union can acquire and hold both movable and immovable property
4. Every registered trade union can sue others
5. Every registered trade union can be sued by others also.

4
9.Ans

 Participation refers to functions performed but involvement is in decision-making

 Participation is in teams but involvement is direct connection between workers and management
 Participation is about contribution towards an objective but involvement is about ideas and
motivation for decision making

5 degrees of Workforce Participation in Management:

 Information sharing or downward communication - Top Down
 Feedback and suggestions from below or upward communication - Bottom-up
 Financial participation in profit-sharing through employee stock options
 Consultation on diversification, expansion, strategy etc
 Representation in Works Committee & Joint Management Council (JMC)

10.Ans

1. Discharge simpliciter under the contract:

This refers to the termination of service of the employee in terms of the contract of employment
between them. Such termination may be effected with or without notice. In either case, the
employer is under no obligation to assign reasons for such termination.

2. Dismissal for misconduct:

‘Dismissal’ is associated with misconduct alleged and proved against the employee in the course
of a disciplinary action. Employer is not obliged to serve notice in case of dismissal.

3. Termination for reasons of continued ill health:

Where an employee is suffering from continuous and perpetual ill-health to such an extent that he
isnot in a position to attend the factory/office for long spells or perform normal normal functions
owing to such ill-health, the employer can terminate the contract of employment.

4. Retrenchment :
This refers to the termination of workmen or staff who are rendered surplus, whether the surplus
is due to automation, rationalisation or installation of labour-saving machinery. The employer
should normally follow the principle of ‘last come, first go’ while doing retrenchment in the
industrial establishment.

5
11.Ans

Voluntary abandonment of service vs. Loss of lien:

 Voluntary abandonment – Abandonment of service by an employee without information or serving
notice period
 Loss of lien – Extended absenteeism without authorization for consecutive 8 or 9-days results in
termination of employee
 The former is intentional and deliberate; the latter could be due to inability or injury or other
situations beyond individual control

Part-II

1.Ans

I. Main issue:
1. A union forced the corporation to give 160 casual workers permanent status, which boosted costs
but not productivity.
2. While the company administering the employment evaluation programme is commendable, the
consultants were hired rather than the union.
3. Union pressing the corporation to raise pay despite the company's unsustainable financial state.
4. The rationale of company employing contract employees for ancillary work is sound but did not
engage the Union before implementing it.
5. Union threatening direct action against employing contract labour despite company giving a
sound rationale.
6. Union calling for token strike, making demands for wage increases, and sabotage when the
Collective agreement was in force.
7. The union's demand for a 24-hour work stoppage when the furnace is required to run 24 hours a
day, seven days a week.
8. Union refuses to exempt members from strike action in the event of the furnace's progressive
shutdown.
9. The union's ridiculous demand that 500 employees be paid their full salaries throughout the
gradual shutdown, while only 25 personnel are necessary.
10. Despite the availability of raw materials, a company has a virtual stranglehold on the glass
production industry. The operation's closure would have repercussions throughout the economy

II. strategies of the management and union:

By management:
1. Agreement to treat employees with less than a year of service as casuals.
2. A programme for job evaluation based on a factor comparison method.
3. Creating a reasonable salary structure based on a skill-responsibility framework.
4. Putting in place an evidence-based promotion and advancement system.
5. Reaching a temporary peace agreement with the Union through collective bargaining.

By Union:
1. Demand permanent status for casual workers.
2. Opposed the job evaluation program.
3. Negotiated a Collective Agreement with company to not resort to strike action for some time.
4. Protested against the contract labour employment by company.

6
 5. Calling token strike, demanded wage increase, and sabotage.
6. Asking for 24-hour work stoppage after ending of Collective Agreement only.
7. Refusing to exempt members from strike action.

iii. In your opinion, what should have been the strategies of the parties?
1. The demand for making casual workers should have been based on mutually agreed criteria,
empirical evidence, and best practices, rather than a blanket demand or refusal.
2. Company should have consultation of all stakeholders in job evaluation, and the Union should
have participated in it actively rather than blanket opposition.
3. Company should have engaged the Union before employment of contract workers and Union
should have considered it positively.
4. Union should not have resorted to strike and sabotage when Collective Agreement was in force.
5. Union should have either allowed 25 workers to be exempted from strike, or not demanded full
salary to all workers during the gradual shut down.

IV. What lessons does this case throw-up for union and management?
1. Before any important activities involving workers, such as the Job Evaluation Program or Contact
Workers Employment, management should involve and advise the Union.
2. Management should aim to form several unions rather than concentrating power in one.
3. Negotiating temporary peace agreements, such as the Collective Agreement, appears to be a good
strategy.
4. The Union should refrain from violent and sabotage activities that undermine its credibility.
5. The union should not make irrational demands, such as no tax exemption or full pay.
6. Rather of refusing to bend and creating deadlocks, both parties should be more willing to
compromise in order to create room for negotiation.

2.Ans

 Yes, the settlement between the Management and Employee Union is binding on members of
the Crafts Union.
 As per the direction of HC, only 239 members of Crafts Union sent the opposing letter, while
a majority of 313 was required, thus the HC judgement does not stand in favor of Crafts
Union.
 There exists no adequate reason to believe that the settlement between the Management and
The Employees Union is not valid under Section 18 (1) or Section 2 (p) of IDA, as claimed by
the Crafts Union.
 According to Section 18 (3) (b) of IDA, a settlement is applicable on all parties summoned to
appear in the conciliation proceedings.
 The argument by the Crafts Union that no one arrived at the conciliation proceeding does not
matter as failure to appear at the conciliation proceedings does not insulate the summoned
parties from the application of the settlement.
3.Ans

 The employer, according to the standing orders, did a correct thing

 But, as observed by the court as well, the principle of natural justice was violated.
 Because the law of the land prevails over standing orders, the termination is not valid.

7
4.Ans

 The workers have damaged the property and remained absent without any notice.
 The employer has tried to reach out to the workmen and the address provided was also false.
 The management instituted disciplinary action and retrenched them and was correct in doing so.

5.Ans

1. ID Act Section 25F (a) - Notice should be served 1 month prior to the workmen in writing
2. Registered post was returned. No names are published in the news paper
3. So we cannot say that the notice was served despite they are pasted on the walls - which did not
have the names
Hence, the 13 people cannot be retrenched