1. PHILIPS INDIA - LABOR PROBLEMS AT
SALT LAKE
GUJARAT NATIONAL LAW UNIVERSITY
MBA (FINANCIAL MANAGEMENT AND BUSINESS LAW)
PRESENTED BY :
MANI SHANKAR DWIVEDI
16MB05
2. SELLING BLUES
ABOUT
PLACE : KOLKATA, WEST BENGAL.
COMPANY : PHILIPS ELECTRICALS CO. (INDIA) LTD. (1930)
NOW
PHILIPS INDIA PVT. LTD. (1956)
3. HISTORY OF COMPANY
LAMP MANUFACTURING IN 1938 IN KOLKATA
A RADIO MANUFACTURING FACTORY IN 1948.
AN ELECTRONICS COMPONENTS UNIT WAS SET UP IN LONI, NEAR PUNE, IN 1959.
AN ELECTRONICS MEASURING EQUIPMENT. KALWA FACTORY IN MAHARASHTRA
TELECOMMUNICATION EQUIPMENT IN KOLKATA
4. CASE DETAIL
LABOR PROBLEMS OF THE PHILIPS INDIA LTD ,PIL IN 1998 SALT LAKE FACTORY KOLKATA INDIA.
TWO UNION ACTIVE AT PHILIPS EMPLOYEE UNION (PEU) & PIECO WORK UNION (PWU).
PIL MANAGEMENT DECIDED TO SELL THE FACTORY
TARGET : PIL TARGETED TO IMPROVE PRODUCTION 40,000 TO 270,000 UNIT
THE COMPANY EVEN EXPECTED TO WIN THE PHILIPS WORLDWIDE AWARD FOR
QUALITY AND BECOME THE SOURCE OF PHILIPS EXPORTS IN ASIA.
DECISION : RELOCATION ITS AUDIO PRODUCT, PUNE.
RESULT : DISPLACEMENT OF 600 WORKERS
PRODUCTION FALLS
5. CONT…
PRODUCTION FALLS
FEAR OF LOSING JOBS
ISSUES : WORKERS CLAIM ON MANAGEMENT FAULTS .
MANAGEMENTS SAYS ITS FALLS IN CTV MARKET.
LEADS : 20 MONTHS LONG BATTLE.
CONTINUOUS FALLS PRODUCTION.
MANAGEMENTS DECIDED TO SELL SALT LAKE FACTORY
(1998).
6. SELLING TROUBLES
APPOINTED HONG KONG AND SHANGHAI BANKING CORPORATION (HSBC)
VIDEOCON (KITCHEN APPLIANCES INDIA LTD.)APPROACHED
VALUATION ASCERTAINED 28 CRORE.
AGM CONDUCTED &51 % VOTE IN FAVOR OF SALE.
FI’S AND SHARE HOLDER OPPOSED THE DECISION
7. CONT.…
EGM CONDUCTED & FI’S VOTED IN FAVOR OF PIL.
WORKERS APPROACHED VIDEOCON TO WITHDRAW DEAL,
VIDEOCON DENY
WORKERS FILED PETITION IN KOLKATA HIGH COURT
8. JUDGMENT BY KOLKATA HIGH COURT
IN MARCH1999, RESTRAIN THE DEAL OF SALE
ON THE GROUND OF LOW PRICE
PIL MOVES TO SUPREME COURT
9. JUDGEMENT DAY
SUPREME COURT (DECEMBER 2000)
THE WORKERS CAN DEMAND FOR THEIR RIGHTS,
THEY HAD NO SAY IN ANY OF THE POLICY DECISIONS OF THE COMPANY,
IF THEIR INTERESTS WERE NOT ADVERSELY AFFECTED.
DECISION IN FAVOUR OF PHILIPS INDIA PVT. LTD.