Industrial relations at bata

2. Thomas
17/09/1914
to
/31/08/2008
Offering style, comfort
and quality at the best
price

3. Employs more than 40,000 people
Serves 1 million customers per day
Runs 33 production facilities in 22 countries

4. Background
1990- signed agreement with AIBSMU, which stipulated
that the management would fill up 248 vacancies in its
retail outlets
1995 - BSO restructured the entire board and sent in a
team headed by Weston
1996-Reported net profits of Rs 41.5 million on revenues
of Rs 5.9 billion
1997-Reported net profits of Rs 167 million on revenues
of Rs 6.7 billion

5. Background
1998- First time signed long-term bipartite agreement
with the unions without any disruption of work
1999- February 1999, a was declared
in Bata's Faridabad Unit
March 8, 2000- was declared at Bata's Peenya
factory in Bangalore, following a strike by its employee
union
July 2000- Lifted the at the Peenya factory

6. July 2000- Lifted the at the Peenya factory
Workers opposed the company's move to get an undertaking
from the factory employees to resume work.
Employees demanded revocation of suspension against 20 of
their fellow employees.
Demanded that conditions such as maintaining normal
production schedule, conforming to standing orders and the
settlement in force should not be insisted upon

7. Reasons for strike
1. Downsizing
2. Change in management
3. Increase in working hours
4. Change in employment policy
5. Demand of union for workers participation in management.
6. Wage hike

8. Measures taken by
1995,96 &98:
Bipartite agreements to resolve labour concerns
1999:
 Signing of three year wage agreement that included fiscal
benefits.
Payment of Rs 4000/employee.
Management agreed to include 10% of 400 contract labors

9. SWOT Analysis
•Found in all metros, mini-metros,
towns
•Present in 70 nations
•Excellent advertising
•Strong Brand presence
•Intense competition
•Limited scope for re-invention
of the products
•High cost of brand
protection
•Increased market size
•Global expansion in
premium footwear section
•Create separate division
for rural population
•Intense competition from
other famous brands
•Commoditization, if
premium products are not
differentiated well.
STRENGTHS
OPPORTUNITY
WEAKNESS
THREAT

10. Views
1. Bata should not give the charge to expatriate manager as it
brought the feeling of distrust with the management
2. Secondly, they shouldn't begin the downsizing exercise
instantaneously and rapidly. It should be a slow exercise.
3. Instead of outsourcing 23 million pairs per year from other
industries, they should have started manufacturing it in their
own unit.