PHILIPS INDIA LABOUR PROBLEM AT

SALT LAKE
WORKDONE BY..

1. MRINMOY SARKAR
2. JOY GUPTA
3. KAZI FAZILA TASNEEM
4. SAYBAN KUMER YADAV
5. BHANU PRATAP MAHATO
CONTENT

 INTRODUCTION OF COMPANY
 COMPANY NET INCOME
 MANUFACTURES AND SELLS
 TO ESTABLISHMENT OF GOOD MARKETING
 SUDDEN DEMOTION OF PRODUCTION
 PROBLEMS OF PRODUCTION
 JUDGEMENT DAY
 AWARD WINNING
 MORE OF PHILIPS
 SOLUTION AND CONCLUSION
PHILIPS

 The Philips Company was founded in 1891, by Gerard Philips and his father
Frederik Philips.
 Philips is registered in the Netherlands as a Naamloze Yennootschap and
has its global headquarters in Amsterdam.
 At the end of 2013, Philips had 111 manufacturing facilities, and also sales
and service operations in around 100 countries.
 Philips achieved total revenues of €18.121 billion in 2018.
 Philips currently holds around 54,000 patent rights, 39,000 trademarks,
70,000 design rights and 4,400 domain name registrations.
 Philips is organized into three main divisions: Philips Consumer Lifestyle, Philips
Healthcare and Philips Lighting
 PHILIPS IN INDIA

 It started it’s operation in India 1930, at Kolkata .

 A Private Company under the name Philips Electrical Company (India)
Limited.
 The company comprised a staff of 75 and was a sales outlet for Philips lamps
imported from overseas.
 In 1957, the company is converted into a public limited company, renamed
“Philips India Ltd” on 12th of September.
 In 1985, Philips inaugurates its consumer electronics factory at Salt Lake,
Kolkata.
COMPANY NET INCOME
 MANUFACTURES AND SELLS
 The company sells radio receiver component,amplifier,electrical lamps, lighting
fittings and accessories, medical apparatus, etc.
 In 1963, Philips invents the compact audio tape cassette and sets a global
standard for tape recording
 In 1965 (3 April), the Philips radio is manufactured in India.
 In 1982, Philips brings color television transmission to India with the supply of four
outdoor broadcast vans to Door darshan during the IX Asian Games.
 In 1983, Philips launches the Compact Disc and revolutionizes the way the world
listens to music.
 In 1993 Philips launching its domestic appliance business in India and in 1995 Philips
introduces compact fluorescent lamps into the country.
 In 1996, the Philips Software Centre is established in Bangalore.
 In 1998, Philips launches Flat Televisions and CD-recorders – both firsts in India.

 TO ESTABLISHMENT OF GOOD MARKETING

 The wake of booming consumer goods market in 1992, PIL decided to

modernize its Salt Lake factory in Kolkata.
 In 1992,the year ended with an impressive 47 per cent value-share of the
total audio market by the company
 The company's share at the end of 1993 was 41 per cent of a Rs 750
crore (Rs 7.5 billion) market.
 They sells Rs 950 crore (Rs 9.5 billion) market that includes mini-systems,
CD portables, mono and stereos and radios worldwide
 ANALYSIS
 Two unions active at PIL Philips Employee Union (PEU) and Pieco Workers Union (PWU).
 In 1992, PIL decided to modernize its Salt Lake factory located in Kolkata and want to
increase CTV production by 40000 to 2.78 lakh.
 In 1992 the company also relocated its audio product line to Pune as a result
displacement of 600 workers.
 BY 1996 Slowdown in the CTV(color Television) market demand made the workers to
think about their job. At same time the workers raised voices against the management
and asked for a hike in wage.
 The differences with workers and CTV market crisis led to declining production and
losses then PILs management decided to sell the factory.
 The difference resulted in 20-month long battle over the wages hikes issue, go slow
tactics of workers declining production and huge loss for the company.
 In May 1998 PIL announced to stop production in June 1998.
 PROBLEM WITH (PWU)
 PIL decided to have a common manufacturing unit and integrated technology to reduce
cost and overcome from the situation.
 PIL reduces workforce modernized plan spending Rs7.1 crore.
 Videocon approached PIL as buyer but had reservations about overstuffed and under utilized
plan
 Videocon confirms Kitchen Appliances India Limited as it’s nominee for buying the plant.
 PILS plan of selling the CTV unit claimed the price of Rs 90 million was quite low against
valuation of 300 million by Dalal Consultants independent value.
 The workers Union objected and made a counter bid. PIL India rejected the offer claimed that
it was legally bound to sell Videocon.
 Then the workers filled petition in the Kolkata High Court challenging the sale agreement.
 PIL and Videocon decided extend their agreement by 6 months to accommodate the courts
order and workers agitation.
 JUDGEMENT DAY
 The day of judgement in Kolkata high Court strikes down Philips deal with
Videocon in March of 1999.
 Then The Supreme Court finally passed judgment on the controversial Philips
case in favor of Philips India limited.
 The judgement said that, though the workers can demand for their rights, they
had no say in any of the policy decision made by the company, if their interest
were not adversely effected.
 The Supreme Court decision taken repeats the position which Philips has
maintained all long the transaction with benefit of the Philips shareholders .The
judgement dismissed the review appeal filed by the workers.
 The Company transferred to Videocon Workers employment was taken over by
Kitchen Appliances.
 The transfer of ownership did not interrupt the services of workmen Kitchen
Appliances, it started functioning from March 2001.
 PHILIPS AWARD WINNING

 Energy star award-Philips continues to earn praise for the work protecting the
environment through manufacturing of energy-efficient products.
 CDP- Philips for the sixth consecutive year been placed on the Carbon Disclosure
Project (CDP) Climate Change A List. Philips scored the CDP A rating for its
engagement with suppliers on climate change.
 Circular economy- Frans van Houten, CEO & Chairman, Royal Philips received the
Fortune Award for Circular Economy Leadership
 EPO- Philips leads the world in filing patents at the European Patent Office for second
consecutive year in 2016
 In 2014, Philips was ranked 12th among India's most trusted brands according to the
Brand Trust Report.
MORE OF PHILIPS
 All around the world, resource constraints are driving a shift to
value-based healthcare – a system that increase access to care
and improve patient outcomes while also raising cost productivity.
At the same time, aging populations and the rise of chronic
diseases like heart disease and respiratory conditions are driving up
demand for healthcare.
 Philips sees significant value in more integrated forms of healthcare,
unlocking the power of data and artificial intelligence at the point
of care.
 Philips put emphasis on both primary and secondary prevention
and population health management programs.
 At Philips, they are striving to make the world healthier and more
sustainable through innovation, with the goal of improving the lives
of 3 billion people a year by 2030.
SOLUTION AND CONCLUSION
 Philips India limited can gain their workers trust by giving good training
good wages, motivating them company would be in profit.
 Supreme Court decision seemed to be a typical case of all well that
ends well.
 The judgement said that though the workers can demand for their rights,
they had no say in any of the policy decision made by the company, if
their interest were not adversely effected
 The transactions benefited to shareholders.
 How far the Slat Lake workers agreed with this remain unanswered.
THANK YOU