Industrial Relations and disputes

1. Bhopal School Of Social Sciences
Department of Management
Industrial Relations
And
Industrial Disputes
By:
Shivangi Kingrani
BA Management
5th semester

2. Industrial
Disputes

3. What is
a
Dispute?

4. Dispute means
difference or
disagreement of strife
over some issues be-
tween the parties.

5. What
Are
Industrial Disputes?

6. According to Sec. 2
of
the Industrial Dispute Act, 1947,
“Industrial dispute means any dispute or
difference between employers and employers
or between employers and workmen or
between workmen and workmen, which is
connected with the employment or non-
employment or the terms of employment or
with the conditions of labour of any person”

7. Forms
Of
Industrial Disputes

8. Strikes

10. Depending on the purpose
strikes are classified into two types
(i) Primary Strikes:
These strikes are generally aimed against the employers with
whom the dispute exists.
(ii) Secondary Strikes:
These strikes are also called the ‘sympathy strikes’. In this form
of strike, the pressure is applied not against the employer with
whom the workmen have a dispute, but against the third person
who has good trade relations with the employer.

11. Sample of a strike notice

12. LOCKOUTS

13. Lock-out is the weapon available to
the employer to shut-down the
place of work till the workers agree
to resume work on the conditions
laid down by the employer. The
Industrial Disputes Act, 1947
defined lock-out as “the temporary
shutting down or closing of a place
of business by the employer”.

14. GHERAO

15. Gherao means to surround. It is a
physical blockade of managers by
encirclement aimed at preventing the
egress and ingress from and to a
particular office or place. This can
happen outside the organisational
premises too. The managers / persons
who are gheraoed are not allowed to
move for a long time.

16. Picketing
and
Boycott

17. Picketing
Is a method designed to request workers to withdraw
cooperation to the employer. In picketing, workers
through display signs, banners and play-cards drew
the attention of the public that there is a dispute
between workers and employer.
Boycott
Aims at disrupting the normal functioning of the
organisation.

18. CAUSES
OF
INDUSTRIAL
DISPUTES

19. (i) Wages:
Low wages of industrial workers constitute a major cause of industrial disputes
in the country.
(ii) Bonus:
The workers feel that they should have a greater share in the profits of the
industrial concern. Non-acceptance of this fact by the employers has been a
source of friction among the employers and the workers.
(iii) Working Conditions:
The demand for improvement in working conditions such as lesser working
hours, security of job, better safety measures in the factory, leave, canteen,
gratuity facilities, etc., are also responsible for many industrial disputes.
(iv) Other Causes
Other causes that lead to disputes are conflict between rival unions for
representation, insult to trade union leadership by the employer, the fear of
retrenchment of workers, and sense of frustration among labourers, political
issues etc.

21. PREVENTION
AND
SETTLEMENT OF
INDUSTRIAL
DISPUTES

22. Machinery for Prevention and
Settlement of Industrial
Disputes
Voluntary methods Government
machinery
Statutory measures

23. Analysis of
Industrial
Disputes

25. Case Study
On
Industrial
Disputes

26. PHILIPS INDIA
LABOR
PROBLEMS AT
SALT LAKE

27. About
the
company

28. The company was incorporated on 31st January, 1930, at Calcutta.
• A Private Company under the name Philips Electricals Company (India)
Limited.
• In 1956 the name was changed to Philips India Private Ltd. on September
12th.
• In 1957 it was converted into a Public company on 31st October.
• In 1967 as on 31st October, the name was changed from Philips India
Private Ltd. to Philips India, Ltd.
• The Company manufactures and sells radio receivers, components,
amplifiers, electrical lamps, lighting fittings and accessories, medical
apparatus, etc.
• The Company's products includes mercury and sodium lamps, light fittings
and accessories radios and public address equipment; hospital and dental
equipment etc.
• The wake of the booming consumer goods market in 1992, PIL decided to
modernize its Salt Lake factory located in Kolkata. The plants output was to
increase from a mere 40,000 to 2.78 lakh CTVs in three years.

29. Case
Details

30. The case study is about the labour
problems
of the Philips India Limited’s PIL 1998
Salt Lake factory Kolkata India.
Two unions active at PIL :
Philips Employee Union (PEU)
and Pieco Workers Union (PWU).
The differences with workers led to
declining production and losses.
PILs management decided to sell the
factory.

31. The Union objected and
made a counter bid
highlighting the problems
between PIL and its workers
the case examines the
reasons behind the conflict.

32. SALT LAKE
FACTORY
FOCUS AND
EXPANSION

33. •The company even expected to win the Philips
Worldwide Award for quality.
• The Company wanted to become the source of Philips
Exports in Asia Focus basically on its audio and video
based products.
• The company relocated its audio product line to Pune
in spite of the move that resulted in the displacement of
600 workers there were no signs of discord largely due to
the unions involvement in the overall process.
• Slowdown in the CTV market demand made the
workers to think about their job due to this workers
raised voices against the management and asked for a
hike in wage.

34. • The difference resulted in 20 month
long battle over the wages hikes issue,
go slow tactics of workers declining
production and huge loss for the
company.
• In May 1998 PIL announced to stop
production in June 1998.
• A series of negotiations, the unions
and the management came to a
reasonable agreement on the issue of
wage structure.

35. SELLING
TROUBLES

36. • PIL decided to have a common
manufacturing unit and integrated
technology to reduce cost.
• Videocon approached PIL as buyer but
had reservations about over staffed and
under utilized plant.
• PIL reduces workforce modernized plant
spending Rs 7.1 crore.
• Videocon confirms Kitchen Appliances
India Limited as its nominee for buying the
plant.

37. • PILs plan of selling the CTV unit
Claimed the price of Rs 90 million was
quite low against valuation of 300
million by Dalal Consultants
independent values.
• Workers approached the Videocon to
withdraw from the deal.
• They refused, workers filled petition
in the Kolkata High Court challenging
the sale agreement.

38. • In March 1999 Calcutta Court
strikes down Philips deal with
Videocon.
• PIL and Videocon decided to
extend their agreement by 6
months to accommodate the
courts order and workers
agitation.

39. JUDGMENT
DAY

40. • The Supreme Court finally passed
judgment on the controversial Philips case
in favour of PIL.
• The judgment dismissed the review
appeal filed by the workers.
• The Company transferred to Videocon
Workers employment was taken over by
Kitchen Appliances.
• The transfer of ownership did not
interrupt the services of workmen Kitchen
Appliances, started functioning from
March 2001.

41. • The factory has been design by Videocon as a
major centre to meet the requirement of the
eastern region market and export to East Asia
countries.
• The judgment said that though the workers
can demand for their rights, they had no say in
any of the policy decision made by the company,
if their interest were not adversely affected.
• The Supreme Court decision taken repeats the
position which Philips has maintained all long
that the transaction will benefit the Philips’
shareholders.

42. CONCLUSION

43. • Supreme Court decision
seemed to be a typical case of all
well that ends well.
• The transactions benefited to
shareholders.
• How far the Slat Lake workers
agreed with this remain
unanswered.

44. QUESTIONS

45. Changes taking place in
PIL made workers feel
insecure about their jobs.
Do you agree with this
statement? Give reasons
to support your answer.

46. Yes,
• The idea of relocating of the Pune plant had almost resulted in the
displacement of 600 workers from 1 unit which in turn could possibly target
their jobs also. The unions realized that the management might not be able to
complete tasks and that their jobs are in danger.
• The slow down in the CTV markets, the workers were asked to go slow, which
came down to take the decision of raising their voices against the management
for a hike in wages.
• The employees also retaliated stating that they continued to work in spite of
the irregular hike in wages.
• The union had to face another problem of being shifted under another
ownership of Videocon which made them think that this company will not be
able to pay the wages and they cannot trust on this company too, because
Videocon faced failures to make payments in time during the course of its
transactions with Philips.
• The decision to have common electronics facility to reduce the cost and
eventually decision to sell the factory to Kitchen Appliance India Ltd were
cause of their burning insecurity among the workers. And also due to which
PEU demanded salary hike and the company decided to pay less hike in the
salary than demanded by the worker.

47. Highlight the reasons
behind PIL’s decision to
sell the Salt Lake factory.
Critically comment on
PIL’s arguments regarding
not accepting the union's
offer to buy the factory.

48. • The unions were not willing to involve, besides there were
differences in workers and hence it led to decline and losses.
• The plant’s target was to reach from 40000 to 2.78 lakh CTVs in
three years. There was slowdown in CTV market since the
company was not able to reach the target.
• Expansion plans had fallen and the target was not achieved PIL
reject this offer claiming that it was legally bound to sell
Videocon.
• To reduce the recurring loses and to get out of the series of
problems posed by the PEU.
• The company is justified to argue for not accepting the union’s
offer as the workers were underutilized due to the slowdown in
the sales and production of CTV.
• The company even had expected to win the Philips Worldwide
Award for quality but it was not able to do so.
• Due to decline in production the company did not become the
source of Philips Exports in Asia.

49. Comment on the
reasons behind the Salt
Lake workers resisting
the factory's sale.
Could the company
have avoided this?

50. • The factory was good because it has
diversified its business continuously.
The workers have no faith; they were
scared for loosing their jobs as well as
wages were low, therefore deciding to
make the sale.
• Yes, company can avoid their by
giving good training, good wages,
motivating them, company would be in
profit.