INDUSTRI

AL
RELATION
S
Group 4
Concepts
• Values - Values are fundamental principles that ought to be true, such as the belief
that labor should be treated as more than a commodity.
• Assumptions - Assumptions are beliefs about human behavior and the nature of
various institutions such as markets, laws, corporations, and unions that are
presumed to be true, such as the belief that there is an inherent conflict of interest
in the employment relationship.
• Ideology - a theory that is used to advocate and justify behaviors, outcomes, and
institutions.
• Frame of Reference - a theory used to guide and evaluate behaviors, outcomes,
and institutions.
• A frame of reference is how one sees the world; an ideology is how one wants
others to see the world.
Four theories of Employment Relationship
MARUTI CASE
WORKER ISSUES
• Salaries lower than those of workers at Gurgaon plant
• Tight work schedules
• Just two breaks of only 7.5 minutes during the day for tea,
snacks, use of toilet and one 30-minute lunch break
• No relief workers at the Manesar conveyor belt in case of
emergency
• Supervisors often rude in behavior.
• Manesar Trade Union not given recognition
 • Survival and Income – The 700 contract workers at
Manesar wanted wages and benefits similar to those of the
permanent workers.
EMPLOYEE
INTEREST • Equity and Voice – The workers at Manesar wanted
recognition to their own Trade Union. The union at the
Gurgaon plant represented workers of a different
demographic. Hence the workers at Manesar felt that the
existing union will not represent their interests fully.
EMPLOYE • Profit Maximization – Maruti introduced several
R’S initiatives to increase production at its Manesar
INTEREST plant. Output increased swiftly, however
S workers began to complain about working
conditions such as fewer & shorter breaks.

• Power and Control – Maruti wanted control

over its labor hence they were unwilling to give
recognition to the Trade Union.
 • As per the four theories of employment relationship
Theories given in the Budd and Bhave article, unitarist corporate
ideologies are seen as valid frames of reference by
Applicable unitarist actors but are seen as disguised coercion and
union busting by actors who look at human resources
policies through the lenses of pluralist and critical
frames of reference.
• Maruti did not want to recognize the Manesar Trade
Union and the Unitarist assumption is that conflict in
unnecessary and that trade unions are avoidable. Also
profit maximization is a characteristic of a unitary
frame of reference. Hence, we can say that Maruti was
following a Unitary approach.
 • Another theory or frame of reference mentioned in
Theories the Budd and Bhave article is the Critical Employment
Relationship. The critical employment relationship is
Applicable rooted in the power and control interests of employers
and employees and therefore sees the employment
relationship as a struggle for power and control.
• Maruti thought that the new Trade Union and the
protests were being backed by the Left. Maruti thus
feared losing control over its labor and hence did not
want to give recognition to the Trade Union. So, we
can analyze this case from this frame of reference as
well.
 Proposals Moving Forward
• Recognize Trade Unions
• HR to be in constant touch with Union leaders to listen and understand to their
concerns
• Give adequate lunch and toilet breaks
• Contract work should only be limited to non-core activities
• Equal wages should be given across all plants – the workers at Manesar were
receiving lower salary than those at Gurgaon
• Supervisors should not behave in a rude manner
• Relief workers should be available in case of emergency
• Revamp the grievance redressal mechanism