Draft 3

Madhya Pradesh Thermal Power Corporation is the biggest thermal power producer located in Jabalpur,
Madhya Pradesh. This power plant generates power at a bigger scale and for the consumption of the
entire state. This was established in the year 2005 under the Company Act 1956. Total permanent
employee strength consisted of 2,065 employees, out of which 1,779 were permanent employees and
on company payroll. There are contractual employees hired through empaneled Contractors
incorporated with the name ‘Manpower & Logistics’ owned by Anurag Mishra.

Gradually as the demand increased to produce more power to meet the state’s consumption, the
management decided to deploy more worker but on contractual basis, in order to save the company’s
budget.

The management had a conservative approach to hire permanent employees looking at the wages and
bonus that they are suppose to be paid along with the other statutory benefits given by the company.

The decision was taken in favor of ‘Manpower & Logistics’ to provide more workers with no revision in
the conditions of the contract. In June 2008, additional 271 contractual employees were deployed in
Madhya Pradesh Thermal Power Corporation.

The company has provided given facilities to permanent employees to have healthy work environment

1. Canteen with subsidized meals

2. Company accommodation for technically skilled workers
3. Inhouse medical facility
4. Dress allowance
5. Proper hygiene in the company premises
6. Free Library and Gym facility
7. Shift allowance

Permanent employees also had the right to be part of Trade Union under the Trade Union Act
1947 so their common purpose can be achieved by the help of union

These above mentioned facilities created a sense of gap amongst the contractual workers. As they were
also involved in the same nature of work but they were denied to have these common facilities. They
were allowed to only two facilities ; to have drinking water and common restrooms. And, it led to a
feeling of deep grievance and demand of common benefits. This also led to creation of a separate Trade
Union for contract workers. And, resulted in the formation their Trade Union named ‘Kaamgar Union’ as
per ‘The Contract Labour (Regulation and Abolition) Act, 1970’.

With the expansion of work and work load, contractual workers were asked to work for longer
shifts, 10 hrs daily and with no weekly off, with no provision of overtime, no other monetary
benefits and were bound to work in the same unhygienic working condition or with minimum
facilities. The risk factor at the work place was also high and hazardous in nature. The
contractor, Anurag Mishra was only focused to maximise his profit, overlooking the poor
working condition of his deployed workers and the reasons for their grievances. His intention
was only to fulfill the minimum wage requirement as per the ‘Minimum Wages Act 1948’.
8th Dec, 2009 at 4pm there was a major accident that led to an explosion of gas chamber that
had badly injured 10 workmen and 5 workers got permanently disabled which included both
permanent and contractual workers. The HR head Ms. Sweta Singh receives a call from Mr. Roy
on 8th Dec, 2009 at 5pm. Sweta along with the Sr. IR Manager Shashank Dubey and Ankur Tiwari
rush to the plant.
Mr. Shashank tried to make the situation peaceful, he tried to calm down the labour as nothing
big has happened but the workers didn’t listen to him and one of the labors abused him. After
the contract labour got violent, the management representatives returned to Mr. Shashank
Dubey’s office.
In the meanwhile, permanent employees were taken to hospital for special treatment
immediately, and the contractual workers were sent to the government hospital. The contractor
was asked to bear the expenses of the treatment for the injured workers, Thermal Power Plant
has no lability for the medical expenses as per the deemed contract. This discrimination has
created a serious unrest amongst the contractual workers.
On 10th Dec 2009, contractual workers united themselves and tried to contact the management
of the Thermal Power Plant rather than their actual employer, Manpower Logistics. However,
the management didn’t turn up for any discussion because they were not their principal
employer. And as per the contract, the contractor should have been contacted for any grievance
redressal, dispute resolution or compensation of the injured workers.

When their issue was not addressed it led to a violent like situation arose and the leader of
‘Kaamgar Union’ wanted to have workers’ grievances redressed by the company Madhya
Pradesh Thermal Power Corporation. Looking at the denial condition an immediate Strike was
called on 12th Dec 2009 as per the ID Act demanding pay hike, equal facilities at work place,
time to time risk assessment and providing safety equipments for hazardous work. The strike
was called without giving prior notice of 14 days to the company or the contractor. It hampered
the daily production of the power plant. By 13 th Dec, second day of the strike it caused financial
loss of aprrox. 5 crores and essential services supply also disrupted in some part of the state. On
third and fourth day when their issues or demands were not addressed , they went to the extent
of damaging company’s property. This issue was also hyped by the Media.

This led to a massive Industrial Dispute between the Company and the contractual workers. The
management set a meeting on 16th Dec 2009 with the owner of ‘Manpower & Logistics’, Anurag
Mishra to make clear that the strike is illegal and no prior notification was provided to the
management, and the principal employer, ‘Manpower Logistics’ is suppose to redress the issues
and find ways for dispute settlement. The management was not ready for any kind of bipartite
redressal to settle the matter and pressure was created on ‘Manpower Logistics’ to get the
strike called off , or Manpower Logistics’ shall be ready for further consequences which can also
lead to the termination of the contract.

Anurag Mishra wanted to save his contract and suggested the management if a bipartite
discussion can happen. Looking at the demand of the situation, Madhya Pradesh Thermal
Power Corporation thought to have a discussion as the media was highlighting issues and to
 prevent brand value, they thought for bipartite discussion. Shashank Dubey and HR, Sweta
Singh tried to call the union leader of ‘Kaamgaar Union’ for a quick discussion and requested for
support. Both the parties; management and leader of ‘Kaamgar Union’ disagreed for the mutual
agreement. Upon repeated requests and advises they agreed to arrive along with 15 contract
workers to the conference hall. There was clearly no mutual understanding. The union leader
felt that the management was not interested in a corrective action but wants to hurriedly close
the case.

This power station has two functioning trade unions called WWU and EWTU. Both of them were
registered and recognized unions. Both the unions had raised concerns time to time on some
issues related to contract labor, their unfair paygap, overtime and so many other demands. The
management was not seen making any attempts to settle the demands.

Most of the contract labor working with essel were deployed from the villages around and were working
for more than 5 years. The management changed the associated contractors but the contract labour
continued with the new contractors.

In the year 2009, Essel faced a labour unrest and one day strike led by the union. There were some
concerns raised about overworked and undercompensated contract labours. The contract workers
claimed that they were working 10 hrs per day and were sometimes asked to work on Sundays as well.
Management found this uncalled for and confronted the union. They also decided to increase the
security and appointed some strong people from the nearby villages as guards under their security act.

ETPS new plant was commissioned on March 2010. The management decided to start operating to meet
the new demands on Sep 2010. RK Roy was deployed as the plant head. This plant had most of the
unionized contract labour deployed.

On Nov 1st 2010, the HR head Ms Sweta Singh receives a call from Mr Roy. Sweta along with the Sr IR
Manager Shashank Dubey and Ankur Tiwari rush to the plant. There was a major accident that led to an
explosion of hot gases that had instantly killed 10 contract workmen and a couple of them severely
injured. They found that the accident happened while the workers were trying to remove the bottom
ash from beneath the furnace in the boiler unit. The buildup of the ashes shot up and resulted in an
explosion.

Mr Shashank tried to move the bodies from the accident place but was not allowed by the plant labors,
He was also beaten up by one of the labors. After the contract labours got violent, the management
representatives returned to Mr Dubey’s office. After meticulous discussion on the issue, it was decided
not to call the local police and to let the security team take care of the issue for time being keeping in
mind the brand value of the power station.

This news spread like a wild fire to the surrounding areas, political authorities, union leaders and a few
human rights associations. Annoyed contractors gathered in front of the main gate, started shouting,
condemning the management for the inefficient management, burning tyres and other objects.
After a few hrs, Mr Roy entered Mr Dubey’s office and conveyed that the mob is getting more violent
and is demanding Head of Essel to visit the accident location. IR Manager and HR disagreed, but in order
to not let the situation go more hay wire Ankur Tiwari decided to visit the spot with the security team’s
support. Safety head Mr Satyender Nandi also joined Ankur Tiwari, Sweta Singh, Mr Roy and Shashank
Dubey along with some guards.

The management team reached the spot and started to investigate the site and observe the dead
bodies. Meanwhile mob started man handling the team, inhumanely. Mr Roy and Satyender Nandi got
severely wounded and were immediately moved to a hospital nearby.

The remaining returned to the admin block and settled down in the conference hall and informed the
local police. Shashank Dubey and HR Sweta Singh tried to call the union leaders for a quick discussion
and requested for support. Both the leaders disagreed and demanded them to visit the spot and talk to
them. Upon repeated requests and advises they agreed to arrive along with 15 contract workers to the
conference hall. There was clearly no mutual understanding. The union leaders felt that the
management was not interested in a corrective action but wants to hurriedly close the case.

There was extreme distress and fear among all the workers. The on-roll workers also feared attacks on
them. The villagers entered the plant premises and destroyed the infrastructure.

The next day, the power plant blast news made it to the headlines. National Human rights commission
issued a notice to the govt of madhya pradesh asking for a detailed report about the incident. The union
leaders approached the India’s power ministry seeking justice. The ministry agreed to establish a
committee to investigate the accident. An Investigative panel was created on Nov 6 th by the order of the
power ministry under the country’s electricity act 2003. This was led by Mr Deepak Arora, A thermal
power expert. The power ministry informed the panel to submit the detailed report in a month.

Upon investigation, some safety concerns were found in the plant, no equipments were found to
measure the ash buildup and instead prefered physical inspection which was dangerous. It was also
found that the contract workmen weren’t sufficiently skilled. The detailed report was submitted to the
Ministry on Dec 15. They asked Essel to mend their safety practices.

Ankur Tiwari approaches Mr Rajnikanth Tiwari, then Minister of Commerce and Industry for support.
Ankur requests Rajnikanth to help him close this case with minimal loss for Essel.

////Let's discuss the climax in today’s call. This should be accordance to the industry dispute settlement.