Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 3rs Sem 2830303 Management Of Industrial Relations And Labour Legislations Previous Question Paper
Page 1 of 5
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER III ? EXAMINATION ? WINTER 2018
Subject Code:2830303 Date: 11/12/2018
Subject Name: Management of Industrial Relations and Labour Legislations
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a) Answer the following MCQs 06
1
The conflicts and dispute between employers and employees on any
industrial matters are known as
A. Industrial disputes B. Human relations
C. Conflict relations D. All of these
2 ________is the ultimate remedy for the settlement of industrial dispute
through the intervention by the third party appointed by the government
A. Voluntary Arbitration B. Collective bargaining
C. Adjudication D Conciliation
3 Which of the following is not a type of trade union
A. Craft union B. Stable union
C. Company union D. Industrial union
4 Techniques to achieve the objectives of organization are
A. Collective bargaining B. Grievance Handling
C. Negotiations D. All of the above
5 Workers participated in management is highlighted in
A. Article 43A B. Article 42 A
C.
Both( a) and (b)
D.
None of these
6 Which of the following is not a part of the scope of industrial relations
A. Labor relations B. Employer ?employee relations
C. Group Relation D. None of these
Q.1 (b) Explain the following terms
1. Strike
2. Retrenchment
3. Social Security
4. Productivity
04
Q.1 (c) What are the purposes of Industrial Relation? 04
FirstRanker.com - FirstRanker's Choice
Page 1 of 5
Page 1 of 5
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER III ? EXAMINATION ? WINTER 2018
Subject Code:2830303 Date: 11/12/2018
Subject Name: Management of Industrial Relations and Labour Legislations
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a) Answer the following MCQs 06
1
The conflicts and dispute between employers and employees on any
industrial matters are known as
A. Industrial disputes B. Human relations
C. Conflict relations D. All of these
2 ________is the ultimate remedy for the settlement of industrial dispute
through the intervention by the third party appointed by the government
A. Voluntary Arbitration B. Collective bargaining
C. Adjudication D Conciliation
3 Which of the following is not a type of trade union
A. Craft union B. Stable union
C. Company union D. Industrial union
4 Techniques to achieve the objectives of organization are
A. Collective bargaining B. Grievance Handling
C. Negotiations D. All of the above
5 Workers participated in management is highlighted in
A. Article 43A B. Article 42 A
C.
Both( a) and (b)
D.
None of these
6 Which of the following is not a part of the scope of industrial relations
A. Labor relations B. Employer ?employee relations
C. Group Relation D. None of these
Q.1 (b) Explain the following terms
1. Strike
2. Retrenchment
3. Social Security
4. Productivity
04
Q.1 (c) What are the purposes of Industrial Relation? 04
Page 2 of 5
Page 2 of 5
Q.2 (a) What do you mean by ?Discipline?? In what ways the positive approach
to managing discipline more effective than the legal approach.
07
(b) Mention the objectives of the Shop & Establishment Act 1948. What are
the important provisions regarding employment of children, young
person?s & women in this Act?
07
OR
(b) Define the term ?Lay-off?. Explain the special provisions of Industrial
dispute Act regarding lay-off.
07
Q.3 (a) Explain the term standing orders. Why are they called so? Mention some
major items covered in the standing order as per Industrial Employment
(Standing Order) Act, 1946.
07
(b) Explain the role of Central and State advisory board according to
Contract Labor Act 1970.
07
OR
Q.3 (a) Explain with comparative analysis of the three Approaches concern with
IR.
07
(b) State mode of registration, application for registration and cancellation
of registration of trade union under The Trade Unions Act, 1926.
07
Q.4 (a) Explain the silent features of Trade Union Act 1926. 07
(b) Define the ?Factory?. Explain the provision regarding the health of
workers as per the Factory Act, 1948.
07
OR
Q.4 (a) ?The trade union movement in India has not developed along healthy
lines? Comment.
07
(b) ?The concept of workers participation management leads to healthier
Industrial relations.? Comment. Explain the concept of WPM.
07
Q.5 Andhra Pradesh State Road Transport Corporation
The Andhra Pradesh State Road Transport Corporation has been
providing passenger transport facility since 1956. It has been extending
its operation from one region to another by nationalizing the passenger
transport companies in a phased manner. Presently, It nationalized two
routes in East Godavari District in the State in October 1988. Normally,
it absorbs all the employees working in passenger transport companies
before the nationalization and fixes their wages at par with the scales of
similar categories of jobs.
The pay scale in the Corporation are determined on the basis of mutual
agreement between the management and the recognized trade union. The
scales are revised once in three years. The recent agreement came into
force with effect from September 1988. There are two classes in driver
category: class 1 (drivers working on long distance buses). and class II
(drivers working on short distance buses). The pay scale of class II
drivers was enhanced from Rs. 600-1200 to Rs. 900-1600 with effect
14
FirstRanker.com - FirstRanker's Choice
Page 1 of 5
Page 1 of 5
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER III ? EXAMINATION ? WINTER 2018
Subject Code:2830303 Date: 11/12/2018
Subject Name: Management of Industrial Relations and Labour Legislations
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a) Answer the following MCQs 06
1
The conflicts and dispute between employers and employees on any
industrial matters are known as
A. Industrial disputes B. Human relations
C. Conflict relations D. All of these
2 ________is the ultimate remedy for the settlement of industrial dispute
through the intervention by the third party appointed by the government
A. Voluntary Arbitration B. Collective bargaining
C. Adjudication D Conciliation
3 Which of the following is not a type of trade union
A. Craft union B. Stable union
C. Company union D. Industrial union
4 Techniques to achieve the objectives of organization are
A. Collective bargaining B. Grievance Handling
C. Negotiations D. All of the above
5 Workers participated in management is highlighted in
A. Article 43A B. Article 42 A
C.
Both( a) and (b)
D.
None of these
6 Which of the following is not a part of the scope of industrial relations
A. Labor relations B. Employer ?employee relations
C. Group Relation D. None of these
Q.1 (b) Explain the following terms
1. Strike
2. Retrenchment
3. Social Security
4. Productivity
04
Q.1 (c) What are the purposes of Industrial Relation? 04
Page 2 of 5
Page 2 of 5
Q.2 (a) What do you mean by ?Discipline?? In what ways the positive approach
to managing discipline more effective than the legal approach.
07
(b) Mention the objectives of the Shop & Establishment Act 1948. What are
the important provisions regarding employment of children, young
person?s & women in this Act?
07
OR
(b) Define the term ?Lay-off?. Explain the special provisions of Industrial
dispute Act regarding lay-off.
07
Q.3 (a) Explain the term standing orders. Why are they called so? Mention some
major items covered in the standing order as per Industrial Employment
(Standing Order) Act, 1946.
07
(b) Explain the role of Central and State advisory board according to
Contract Labor Act 1970.
07
OR
Q.3 (a) Explain with comparative analysis of the three Approaches concern with
IR.
07
(b) State mode of registration, application for registration and cancellation
of registration of trade union under The Trade Unions Act, 1926.
07
Q.4 (a) Explain the silent features of Trade Union Act 1926. 07
(b) Define the ?Factory?. Explain the provision regarding the health of
workers as per the Factory Act, 1948.
07
OR
Q.4 (a) ?The trade union movement in India has not developed along healthy
lines? Comment.
07
(b) ?The concept of workers participation management leads to healthier
Industrial relations.? Comment. Explain the concept of WPM.
07
Q.5 Andhra Pradesh State Road Transport Corporation
The Andhra Pradesh State Road Transport Corporation has been
providing passenger transport facility since 1956. It has been extending
its operation from one region to another by nationalizing the passenger
transport companies in a phased manner. Presently, It nationalized two
routes in East Godavari District in the State in October 1988. Normally,
it absorbs all the employees working in passenger transport companies
before the nationalization and fixes their wages at par with the scales of
similar categories of jobs.
The pay scale in the Corporation are determined on the basis of mutual
agreement between the management and the recognized trade union. The
scales are revised once in three years. The recent agreement came into
force with effect from September 1988. There are two classes in driver
category: class 1 (drivers working on long distance buses). and class II
(drivers working on short distance buses). The pay scale of class II
drivers was enhanced from Rs. 600-1200 to Rs. 900-1600 with effect
14
Page 3 of 5
Page 3 of 5
from September 1988 in consequence to the latest agreement. The
agreement further stated that the pay scale of the drivers drawing the
scale of Rs. 600-1200 would be fixed in the scale of Rs. 900-1600.
The Corporation absorbed 10 drivers who were with the private
passenger transport companies upon the recent nationalization of two
routes. The personnel department fixed the scale of these 10 drivers in
the scale of Rs.600-1200 and it rejected their plea of fixing their pay in
the scale of Rs. 900?1600 saying that only drivers drawing the scale of
Rs. 600-1200 are eligible to draw the new scale Rs. 900-1600. The
Corporation has set up both the grievance machinery and the collective
bargaining machinery to resolve employee problems. These drivers
submitted this issue to the foreman who was their immediate superior.
The foreman told them to raise this issue in collective bargaining with
the help of the trade union leaders as it was a policy matter. The drivers
approached the trade union leaders and persuaded them to solve the
issue. The trade union leaders included this item in the draft agenda of
the collective bargaining committee scheduled to meet in January 1989.
But the collective bargaining committee deleted this item from the draft
agenda saying that the issue could be settled through grievance
machinery as only 10 drivers out of 3000 drivers of the Corporation were
concerned with the issue.
Questions
1. Who is correct: the personnel department, the foreman, or the
collective bargaining committee?
2. Where do you place the issue for redressal? Give reasons.
3. How will you redress this issue?
OR
Q.5 The Bulb Manufacturing Company
Bulb Manufacturing Company, the subsidiary of a well-known
international corporation, specialized in the manufacture of electrical
equipment like bulbs. electric stoves, heaters, coolers and presses. It had
been operating in India for about two decades.
The company had recently finalized the expansion plans of its only
factory in India. It was decided to shift the factory to a new location, five
miles away. The company had to do the shifting because the expansion
plans required more space than was available at the old site. Since the
present factory was situated in the heart of the town, the workers did not
have much transport difficulty. The old factory site was easily accessible,
and it did not cost much on transport either. The new site though far-off
was well connected by train and bus service. There was no transport
difficulty and some of the workers were already living in that area. The
workers agreed to shift to new premises only If the company granted a
flat increase of Rs. 25 in their monthly salary. The company instead
14
FirstRanker.com - FirstRanker's Choice
Page 1 of 5
Page 1 of 5
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER III ? EXAMINATION ? WINTER 2018
Subject Code:2830303 Date: 11/12/2018
Subject Name: Management of Industrial Relations and Labour Legislations
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a) Answer the following MCQs 06
1
The conflicts and dispute between employers and employees on any
industrial matters are known as
A. Industrial disputes B. Human relations
C. Conflict relations D. All of these
2 ________is the ultimate remedy for the settlement of industrial dispute
through the intervention by the third party appointed by the government
A. Voluntary Arbitration B. Collective bargaining
C. Adjudication D Conciliation
3 Which of the following is not a type of trade union
A. Craft union B. Stable union
C. Company union D. Industrial union
4 Techniques to achieve the objectives of organization are
A. Collective bargaining B. Grievance Handling
C. Negotiations D. All of the above
5 Workers participated in management is highlighted in
A. Article 43A B. Article 42 A
C.
Both( a) and (b)
D.
None of these
6 Which of the following is not a part of the scope of industrial relations
A. Labor relations B. Employer ?employee relations
C. Group Relation D. None of these
Q.1 (b) Explain the following terms
1. Strike
2. Retrenchment
3. Social Security
4. Productivity
04
Q.1 (c) What are the purposes of Industrial Relation? 04
Page 2 of 5
Page 2 of 5
Q.2 (a) What do you mean by ?Discipline?? In what ways the positive approach
to managing discipline more effective than the legal approach.
07
(b) Mention the objectives of the Shop & Establishment Act 1948. What are
the important provisions regarding employment of children, young
person?s & women in this Act?
07
OR
(b) Define the term ?Lay-off?. Explain the special provisions of Industrial
dispute Act regarding lay-off.
07
Q.3 (a) Explain the term standing orders. Why are they called so? Mention some
major items covered in the standing order as per Industrial Employment
(Standing Order) Act, 1946.
07
(b) Explain the role of Central and State advisory board according to
Contract Labor Act 1970.
07
OR
Q.3 (a) Explain with comparative analysis of the three Approaches concern with
IR.
07
(b) State mode of registration, application for registration and cancellation
of registration of trade union under The Trade Unions Act, 1926.
07
Q.4 (a) Explain the silent features of Trade Union Act 1926. 07
(b) Define the ?Factory?. Explain the provision regarding the health of
workers as per the Factory Act, 1948.
07
OR
Q.4 (a) ?The trade union movement in India has not developed along healthy
lines? Comment.
07
(b) ?The concept of workers participation management leads to healthier
Industrial relations.? Comment. Explain the concept of WPM.
07
Q.5 Andhra Pradesh State Road Transport Corporation
The Andhra Pradesh State Road Transport Corporation has been
providing passenger transport facility since 1956. It has been extending
its operation from one region to another by nationalizing the passenger
transport companies in a phased manner. Presently, It nationalized two
routes in East Godavari District in the State in October 1988. Normally,
it absorbs all the employees working in passenger transport companies
before the nationalization and fixes their wages at par with the scales of
similar categories of jobs.
The pay scale in the Corporation are determined on the basis of mutual
agreement between the management and the recognized trade union. The
scales are revised once in three years. The recent agreement came into
force with effect from September 1988. There are two classes in driver
category: class 1 (drivers working on long distance buses). and class II
(drivers working on short distance buses). The pay scale of class II
drivers was enhanced from Rs. 600-1200 to Rs. 900-1600 with effect
14
Page 3 of 5
Page 3 of 5
from September 1988 in consequence to the latest agreement. The
agreement further stated that the pay scale of the drivers drawing the
scale of Rs. 600-1200 would be fixed in the scale of Rs. 900-1600.
The Corporation absorbed 10 drivers who were with the private
passenger transport companies upon the recent nationalization of two
routes. The personnel department fixed the scale of these 10 drivers in
the scale of Rs.600-1200 and it rejected their plea of fixing their pay in
the scale of Rs. 900?1600 saying that only drivers drawing the scale of
Rs. 600-1200 are eligible to draw the new scale Rs. 900-1600. The
Corporation has set up both the grievance machinery and the collective
bargaining machinery to resolve employee problems. These drivers
submitted this issue to the foreman who was their immediate superior.
The foreman told them to raise this issue in collective bargaining with
the help of the trade union leaders as it was a policy matter. The drivers
approached the trade union leaders and persuaded them to solve the
issue. The trade union leaders included this item in the draft agenda of
the collective bargaining committee scheduled to meet in January 1989.
But the collective bargaining committee deleted this item from the draft
agenda saying that the issue could be settled through grievance
machinery as only 10 drivers out of 3000 drivers of the Corporation were
concerned with the issue.
Questions
1. Who is correct: the personnel department, the foreman, or the
collective bargaining committee?
2. Where do you place the issue for redressal? Give reasons.
3. How will you redress this issue?
OR
Q.5 The Bulb Manufacturing Company
Bulb Manufacturing Company, the subsidiary of a well-known
international corporation, specialized in the manufacture of electrical
equipment like bulbs. electric stoves, heaters, coolers and presses. It had
been operating in India for about two decades.
The company had recently finalized the expansion plans of its only
factory in India. It was decided to shift the factory to a new location, five
miles away. The company had to do the shifting because the expansion
plans required more space than was available at the old site. Since the
present factory was situated in the heart of the town, the workers did not
have much transport difficulty. The old factory site was easily accessible,
and it did not cost much on transport either. The new site though far-off
was well connected by train and bus service. There was no transport
difficulty and some of the workers were already living in that area. The
workers agreed to shift to new premises only If the company granted a
flat increase of Rs. 25 in their monthly salary. The company instead
14
Page 4 of 5
Page 4 of 5
offered to give the workers a lump sum of Rs. 30 as a resettlement
'allowance and a permanent increase in salary of Rs. 5 per month to each
worker. This was the situation in October, 1979.
When the plant was being shifted to new site, negotiations between the
company management and the workers representatives went on
uninterrupted for about six months. The workers modified their original
demand and content with a lump sum of Rs. 70 as resettlement allowance
and a permanent increase of Rs. 5 per month as a conveyance as
allowance. After further negotiations and some informal bargaining the
agreed amount was Rs. 45 as lump sum and Rs. 5 as conveyance
allowance. The company's representatives promised to consider this
demand. This was taken by the union leaders to mean that the company
has already conceded this demand. The management's attitude became
stiff and it struck to its old offer. The workers refused to compromise on
those terms. A stalemate ensued. The workers threatened to adopt the
`go-slow" tactics. For 3 months since December they went slow, the
company's production of bulbs was adversely affected. The production
went down. The company assembled 30,000 bulbs per month previously
and with the "go-slow" the production declined to 20,000. The
management refused to intimidate. It sat stiff on its stand.
During this period also, the negotiations were going on. It was at this
stage that the union sought the ministerial intervention. The company
argued that unless the workers resumed normal production, it would not
consider the inflated demands much less concede to them. The Labour
Minister agreed. The Central Government was absolutely against "go-
slow" tactics. The workers stressed that the production figure of 30,000
was the result of overtime work and double shift and that if there were
no overtime the normal production would only be 20,000 bulbs. The
company proved to the Minister, by quoting previous records, that the
workers were going slow. The Minister could not help the workers. He
could intervene only when the workers resumed normal production.
It was at this stage that the company charge sheeted the 10 ring leaders
and suspended them pending inquiry. This proved too much for the
workers. The labour leader agreed to accept the very original terms of
the company and offered to give normal production provided the
suspended leaders were reinstated. The company refused to take any
notice of even this modified demand.
Then the workers gave notice of a strike on February 28, 1980.
The whole idea was to put pressure on the company in the most critical
month of the year, namely, March when the company needed maximum
production to dispose of outstanding orders for bulbs. This was the
assumption on which the workers proceeded. The company refused to
yield. During the first three days. the workers staged a stay-in strike.
After that, the company dared a lock-out for two days. The company
FirstRanker.com - FirstRanker's Choice
Page 1 of 5
Page 1 of 5
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER III ? EXAMINATION ? WINTER 2018
Subject Code:2830303 Date: 11/12/2018
Subject Name: Management of Industrial Relations and Labour Legislations
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a) Answer the following MCQs 06
1
The conflicts and dispute between employers and employees on any
industrial matters are known as
A. Industrial disputes B. Human relations
C. Conflict relations D. All of these
2 ________is the ultimate remedy for the settlement of industrial dispute
through the intervention by the third party appointed by the government
A. Voluntary Arbitration B. Collective bargaining
C. Adjudication D Conciliation
3 Which of the following is not a type of trade union
A. Craft union B. Stable union
C. Company union D. Industrial union
4 Techniques to achieve the objectives of organization are
A. Collective bargaining B. Grievance Handling
C. Negotiations D. All of the above
5 Workers participated in management is highlighted in
A. Article 43A B. Article 42 A
C.
Both( a) and (b)
D.
None of these
6 Which of the following is not a part of the scope of industrial relations
A. Labor relations B. Employer ?employee relations
C. Group Relation D. None of these
Q.1 (b) Explain the following terms
1. Strike
2. Retrenchment
3. Social Security
4. Productivity
04
Q.1 (c) What are the purposes of Industrial Relation? 04
Page 2 of 5
Page 2 of 5
Q.2 (a) What do you mean by ?Discipline?? In what ways the positive approach
to managing discipline more effective than the legal approach.
07
(b) Mention the objectives of the Shop & Establishment Act 1948. What are
the important provisions regarding employment of children, young
person?s & women in this Act?
07
OR
(b) Define the term ?Lay-off?. Explain the special provisions of Industrial
dispute Act regarding lay-off.
07
Q.3 (a) Explain the term standing orders. Why are they called so? Mention some
major items covered in the standing order as per Industrial Employment
(Standing Order) Act, 1946.
07
(b) Explain the role of Central and State advisory board according to
Contract Labor Act 1970.
07
OR
Q.3 (a) Explain with comparative analysis of the three Approaches concern with
IR.
07
(b) State mode of registration, application for registration and cancellation
of registration of trade union under The Trade Unions Act, 1926.
07
Q.4 (a) Explain the silent features of Trade Union Act 1926. 07
(b) Define the ?Factory?. Explain the provision regarding the health of
workers as per the Factory Act, 1948.
07
OR
Q.4 (a) ?The trade union movement in India has not developed along healthy
lines? Comment.
07
(b) ?The concept of workers participation management leads to healthier
Industrial relations.? Comment. Explain the concept of WPM.
07
Q.5 Andhra Pradesh State Road Transport Corporation
The Andhra Pradesh State Road Transport Corporation has been
providing passenger transport facility since 1956. It has been extending
its operation from one region to another by nationalizing the passenger
transport companies in a phased manner. Presently, It nationalized two
routes in East Godavari District in the State in October 1988. Normally,
it absorbs all the employees working in passenger transport companies
before the nationalization and fixes their wages at par with the scales of
similar categories of jobs.
The pay scale in the Corporation are determined on the basis of mutual
agreement between the management and the recognized trade union. The
scales are revised once in three years. The recent agreement came into
force with effect from September 1988. There are two classes in driver
category: class 1 (drivers working on long distance buses). and class II
(drivers working on short distance buses). The pay scale of class II
drivers was enhanced from Rs. 600-1200 to Rs. 900-1600 with effect
14
Page 3 of 5
Page 3 of 5
from September 1988 in consequence to the latest agreement. The
agreement further stated that the pay scale of the drivers drawing the
scale of Rs. 600-1200 would be fixed in the scale of Rs. 900-1600.
The Corporation absorbed 10 drivers who were with the private
passenger transport companies upon the recent nationalization of two
routes. The personnel department fixed the scale of these 10 drivers in
the scale of Rs.600-1200 and it rejected their plea of fixing their pay in
the scale of Rs. 900?1600 saying that only drivers drawing the scale of
Rs. 600-1200 are eligible to draw the new scale Rs. 900-1600. The
Corporation has set up both the grievance machinery and the collective
bargaining machinery to resolve employee problems. These drivers
submitted this issue to the foreman who was their immediate superior.
The foreman told them to raise this issue in collective bargaining with
the help of the trade union leaders as it was a policy matter. The drivers
approached the trade union leaders and persuaded them to solve the
issue. The trade union leaders included this item in the draft agenda of
the collective bargaining committee scheduled to meet in January 1989.
But the collective bargaining committee deleted this item from the draft
agenda saying that the issue could be settled through grievance
machinery as only 10 drivers out of 3000 drivers of the Corporation were
concerned with the issue.
Questions
1. Who is correct: the personnel department, the foreman, or the
collective bargaining committee?
2. Where do you place the issue for redressal? Give reasons.
3. How will you redress this issue?
OR
Q.5 The Bulb Manufacturing Company
Bulb Manufacturing Company, the subsidiary of a well-known
international corporation, specialized in the manufacture of electrical
equipment like bulbs. electric stoves, heaters, coolers and presses. It had
been operating in India for about two decades.
The company had recently finalized the expansion plans of its only
factory in India. It was decided to shift the factory to a new location, five
miles away. The company had to do the shifting because the expansion
plans required more space than was available at the old site. Since the
present factory was situated in the heart of the town, the workers did not
have much transport difficulty. The old factory site was easily accessible,
and it did not cost much on transport either. The new site though far-off
was well connected by train and bus service. There was no transport
difficulty and some of the workers were already living in that area. The
workers agreed to shift to new premises only If the company granted a
flat increase of Rs. 25 in their monthly salary. The company instead
14
Page 4 of 5
Page 4 of 5
offered to give the workers a lump sum of Rs. 30 as a resettlement
'allowance and a permanent increase in salary of Rs. 5 per month to each
worker. This was the situation in October, 1979.
When the plant was being shifted to new site, negotiations between the
company management and the workers representatives went on
uninterrupted for about six months. The workers modified their original
demand and content with a lump sum of Rs. 70 as resettlement allowance
and a permanent increase of Rs. 5 per month as a conveyance as
allowance. After further negotiations and some informal bargaining the
agreed amount was Rs. 45 as lump sum and Rs. 5 as conveyance
allowance. The company's representatives promised to consider this
demand. This was taken by the union leaders to mean that the company
has already conceded this demand. The management's attitude became
stiff and it struck to its old offer. The workers refused to compromise on
those terms. A stalemate ensued. The workers threatened to adopt the
`go-slow" tactics. For 3 months since December they went slow, the
company's production of bulbs was adversely affected. The production
went down. The company assembled 30,000 bulbs per month previously
and with the "go-slow" the production declined to 20,000. The
management refused to intimidate. It sat stiff on its stand.
During this period also, the negotiations were going on. It was at this
stage that the union sought the ministerial intervention. The company
argued that unless the workers resumed normal production, it would not
consider the inflated demands much less concede to them. The Labour
Minister agreed. The Central Government was absolutely against "go-
slow" tactics. The workers stressed that the production figure of 30,000
was the result of overtime work and double shift and that if there were
no overtime the normal production would only be 20,000 bulbs. The
company proved to the Minister, by quoting previous records, that the
workers were going slow. The Minister could not help the workers. He
could intervene only when the workers resumed normal production.
It was at this stage that the company charge sheeted the 10 ring leaders
and suspended them pending inquiry. This proved too much for the
workers. The labour leader agreed to accept the very original terms of
the company and offered to give normal production provided the
suspended leaders were reinstated. The company refused to take any
notice of even this modified demand.
Then the workers gave notice of a strike on February 28, 1980.
The whole idea was to put pressure on the company in the most critical
month of the year, namely, March when the company needed maximum
production to dispose of outstanding orders for bulbs. This was the
assumption on which the workers proceeded. The company refused to
yield. During the first three days. the workers staged a stay-in strike.
After that, the company dared a lock-out for two days. The company
Page 5 of 5
Page 5 of 5
opened the gates of the factory on the sixth day but the strike continued
for two months.
The company refused to budge an inch from its stand.
Questions
1. What is the problem in this case?
2. Are the go-slow tactics and the strike justified? Who are
responsible for them? What is the remedy?
3. Should the management reinstate the suspended ring leaders?
4. Comment on the collective bargaining approach of the union and
management representatives.
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This post was last modified on 19 February 2020