Bata is an Indian footwear company headquartered in Kolkata with multiple manufacturing plants across India. It employed over 15,000 people and was India's largest footwear manufacturer, selling over 60 million pairs annually both domestically and through exports. However, the company faced financial difficulties due to high costs and surplus labor. In the late 1990s, it implemented restructuring plans that led to labor disputes and lockouts as unions opposed measures like staff reductions and increased work hours. Bata attempted to resolve issues through bipartite agreements with unions in 1995, 1996, and 1998.

1. BATA

2.  Headquartered in Calcutta.
 Bata sold over 60 million pairs per annum in India and also exported its
products
 Plants located in Batanagar (West Bengal), Faridabad
(Haryana), Bangalore (Karnataka), Patna (Bihar) and Hosur (Tamil
Nadu).
 Distribution network of over 1,500 retail stores and 27 wholesale depots.
 Bata was India's largest manufacturer and marketer of footwear
products.
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3.  Reasonably priced
 Sturdy footwear
 Market valuation of Rs 3.7 billion
 Employed over 15,000 people in its
manufacturing and sales operations.
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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.
 Sold its headquarter building in Calcutta for Rs 195 million.
 Company shifted wholesale, planning & distribution, and the
commercial department to Batanagar, despite opposition from
the trade unions.
 Implemented a massive revamping exercise
 Decided to stop further recruitment
 Allowed redundant staff to fill the gaps created by
superannuation and retirements.
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5.  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.
Rewarded workers with a 17% bonus
Workers achieved 93% of their production targets
Faced problems of a high-cost structure and
surplus labour.
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6.  Weston failed to strike a deal with the All India Bata Shop
Managers Union (1992)
 AIBSMU opposed the move to sack all the cashiers in
outlets with annual sales of less than Rs 5 million, which
meant elimination of 690 jobs.
 1998- first time signed long-term bipartite agreement with
the unions without any disruption of work.
 1999-February 1999, a lockout(8 months) was declared in
Bata's Faridabad Unit
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7.  March 8, 2000-lockout was declared at Bata's Peenya factory in
Bangalore, following a strike by its employee union
 July 2000-Lifted the lockout 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.
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8.  September 2000- Bata was headed for a labour dispute
when the BMU asked the West Bengal government to
intervene in what it perceived to be a downsizing exercise
being undertaken by the management.
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9. REASONS FOR STRIKE
 Downsizing
 Change in management
 Increase in working hours
 Change in employment policy
 Demand of union for workers participation in management.
 Wage hike
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10. MEASURES TAKEN BY BATA
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
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11. OUR VIEWS
 Bata should not give the charge to expatriate manager as it
brought the feeling of distrust with the management
 Secondly, they shouldn't begin the downsizing exercise
instantaneously and rapidly. It should be a slow exercise.
 Instead of outsourcing 23 million pairs per year from other
industries, they should have started manufacturing it in their
own unit.
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