Case Study on Reliance Textiles

Naroda, Gujarat.

Submitted To- Submitted By-

Dr. Shavina Goyal Parveen Singh -21421089
Kunal Munjal-21421191
Reliance Textiles, Naroda

 Was established in 1966 by Dhirubhai Ambani

 Located in Naroda, Gujarat.

 Spread over 120 acres and with assets of over Rs.300 crores

 Company posted its highest ever turnover of over USD 44 billion and its net
profit of USD 3.6 billion in the year 2012.

 India’s ‘most modern textile complex’ according to the World Bank.

 Employed 6000 workers

What was the Scenario?
 Since 20 years company’s profits increased ten-fold though the wages for the
workers and Karigars has more or less been the same, but the salary of the
staff increased many times.
 Despite increased profits, workers find their lives not improving and
worsening day by day.
 Permanent workers was given Rs. 5000-6000 per month, the contract
workers were paid Rs.85-100 per day
 No legality of payment in terms of pay slips is maintained, only a voucher is
signed
 Overtime is paid in single rate
 Trade Unions acted just as extended office of the management.(Anti-
Workers Unions)
 Trade Union ( Anti worker unions) and management didn’t involve
workers while taking important decisions.
Strike and Demands of workers.

 Discontentment leads to strike.

 Formed a new, independent union ,named Reliance Employees Union
 Approx 1100 permanent and approx 4000 contract workers were in the newly formed
trade union.
 Reliance Employees Union submitted a 16-point demand list to the management
during the strike.
 Increase of daily
wage of contract
workers to Rs.
200 per day
Double Regularizatio
rate n of contract
overtime. workers

Demands
Tea-snacks of Workers 20%
in the increase in
canteen bonus

No fine for
60% hike 10 minute
in wages late entry
 How Strike was called off?
 Declared strike to be illegal.
 Responded with police deployment, intimidation, arrest of worker’s leaders
 Police was posted at the factory gate.
 Company also responded with media campaign which says that the workers
have only been miffed for not being allowed to carry mobile phones inside the
factory.
 Hired new temporary workers from outside at Rs 400-500 per day, to show
that the plant is running .
 No demands were fulfilled of the workers.
 What could have been done?
 Workers are the main stakeholders of the factory due to whom company was able to
earn huge profits, so they should at least give them wages according to minimum wage
act.
 Moreover overtime was paid at the single rate. Whereas it has been mentioned in the
Factories Act 1948 that overtime should be paid at double rate.
 No pay slips were given to the workers, but if any factory is registered under Minimum
Wages Act 1948, then it needs to issue pay/wage slips to the workers.
 As workers were punished for the late entry even for 10 mins, so company should have
implemented flexi-timing policy not for everyday, but for once in a while
 As the two existing trade unions were just for name’s sake, so workers should have
formed their own trade union earlier. But they made their new union during the strike.
 If not all the demands then at least some demands could have been accepted by the
Reliance so that there could have been some settlement and at the same time work
wouldn’t got affected.
THANKS……..