Industrial Relations

and Labor Law

GROUP 5
ADITYAROOP PATHAK
AJINKYA AHIRE
PRATIK SHINDE
RANGOLI GUPTA
PRIYA ACHHADA
Philips India Limited
Labour Unions involved:  
1) Philips Employees Union (PEU)  
2)Pieco Workers' Union (PWU) 
 
Stakeholders:  
• Top level management of Philips India Limited 
• Workers 
• Unions 
• Top level management of Videocon 
• Other firms wishing to take over Salt Lake manufacturing unit of
Kolkata 
 
Timeline: 1996 to 2001 
 • PIL unable to meet the expected output
• Slowdown in CTV market
• Workers demand of wage hike and other
non monetary benefits
• Denial by PIL

Introduction • After two years, wage hike of Rs. 1178

where is the previous demand of Hike
was Rs. 2000 per worker. 
• Decides to centralize the manufacturing
unit and sell Salt Lake Manufacturing
unit, Kolkata
• 51% votes in favour of selling PIL in
Annual General meeting to Videocon
 • Dalal Consultants valued the unit at Rs. 300 million.
However, the deal was made at Rs. 90 million.

Workers • Unions gave an offer of Rs. 100 million

• MoA with Videocon does not mentions production of CTV
opposition • Videocon’s previous deals with Philips wherein they have
delayed payment
• Workers’ concerns about job safety
Judgement

• Workers filled a case in High Court Kolkata

• Judgement of Trial Court- undervalued unit’s price
• Philips applied to Supreme Court and said that the matter is out of
jurisdiction of Trial Court
• Judgement by Supreme Court in 2000

Question still remains: Did the workers really agree to the judgement?
  Background:
 SAIL incurred Net loss of Rs. 17.2 billion in 1999-2000
 Its market value on Feb, 23, 2001 was only Rs. 340.8
billion
 The Issue:
 McKinsey plan recommended two units; Flat products &
Long products
 Due to intense competition, Flat products were put up
Background, Issue for sale first followed by Long products

& The Conflict  SDF Loans of Rs. 50.73 Bn, IISCO loans of Rs. 3.8 Bn were
forgiven & Rs. 15 Bn loan with 50% interest subsidy was
agreed.
 The Conflict:
 In 1999-2000, company’s personal costs were16.69% of
gross sales, 30% workforce was in Non-plant
 To reduce white collar workers, it was necessary to
change work-record keeping systems
  CEO, Arvind was told to reduce workforce by 60000, through
voluntary retirement scheme
 He expected the number 45000 within two years, but GOI’s
decision to increase age from 55 to 59

Voluntary 
slowed down this goal
SAIL asked Rs. 15 Bn subsidized loan for VRS to meet
McKinsey targets
Retirement  New VRS was launched in 1999, min 15 years service/40 years
age was required for eligibility
Scheme &  Unions were not happy with McKinsey’s recommendations

Response  All SSP TU’s participated in a day long strike on June 24,
1999
 Lack of employment opportunities was main concern
 In response to government’s decision to restructure SAIL,
SSP workers went on strike on Feb 17, 2000
TATA Motors
Limited
Labour Unions involved:   
• No recognized union till then. 
• Bharatiya Kamdar Ekta Sangh Sanand (BKSS) after
recognition. 

Stakeholders: 
• TATA Motors
• Gujarat Government 
• Workers 
• 22 Trade Unions 
• Labour Department
Timeline
 • Wage hikes promised to the permanent workers in 2015
• Hike in charges for transportation and canteen facilities

Dispute • Suspension of 2 permanent workers

• Suspension of 26 additional workers
• Support by 22 Trade Unions of the state demanded a fair
trial
Conclusion

• Union took-off the strike from Sanand plant

• The company took back 13 of the 26 suspended workers. The remaining 13 workers were promised
for an allowance till the report submission by an independent committee formed. The allowance
would consist 75% of their total wage.
• The labour department recognised Bharatiya Kamdar Ekta Sangh Sanand (BKSS) as a Labour Union.
• Normalcy to be restored in plant with the standard productivity, quality, discipline & safety
requirements.
• Long term wage settlement as per employee efficiency and productivity.
TATA Cummins
Labour Unions involved:  
Trainees

Stakeholders:  
• Top level management of TCL
• Trainees
• Labour minister

Timeline: Oct 2013
TATA Cummins