COMPANY PROFILE

COMPANY PROFILE

ISGEC GROUP

A history of 70 Years.

Customers in 66 Countries,

across 6 Continents.

The ISGEC Group comprises the heavy engineering divisions of the Saraswati Industrial

Syndicate Ltd., which is a public company.

The Group has its origins in the Saraswati Sugar Mills, which was established in 1933,

with a sugarcane crushing capacity of 400 Tonnes per day. It has grown into one of

India's largest sugar mill and now crushes 13,000 Tonnes per day. It is today a subsidiary

company.

At the time of the nation's independence, the need for an Indian Capital Goods Industry

was recognized and Isgec was established in 1946. The initial activity was the

manufacture of spares for sugar mills.

In the course of its history, the Company diversified into a range of engineering products.

In 1964 it established a joint venture with John Thompson of the UK to form ISGEC

JOHN THOMPSON.

In 1981, it acquired majority shares in UP STEELS. Both units were subsequently

absorbed into the parent company. Today, the Company has six business units, namely:

At Yamunanagar, (Haryana) India

:: Isgec (Pressure Vessels & Heat Exchangers)

:: Isgec (Presses)

:: Isgec (Iron Castings)

At Noida, (Uttar Pradesh) India

:: Isgec John Thompson (Boilers)

:: Isgec (Sugar Machinery)

At Muzaffarnagar, (Uttar Pradesh) India

::UP Steels (Steel Castings & Ingots)

Spread over 100 Hectares (250 acres), the Company's manufacturing facilities have a

shop floor area of over 55,000 square meters (66,400 square yards) with world class

manufacturing & testing facilities.

Isgec products have been supplied to reputed companies across 66 countries, many of

whom have placed repeat orders on us. These include:

o ABB, Japan

o Siemens, Germany

o Foster Wheeler, China

o Sumitomo, Japan

o Foster Wheeler, USA

o Valeo, France

o GE Hydro, Canada

o VA Tech, USA

o Luk, Germany

o Wesfarmers Group, Australia

Corporate Office :

ISGEC

A-4, Sector-24

Noida-201 301

INDIA

Tel. : +91-120-2411289/90

Fax.: +91-120-2412250

e-mail:corpcomm@isgec.com

International Offices :

USA

ISGEC North America Office

2283 Country Club Drive,

Pittsburgh,

PA-15241

USA

Tel. : +1-412-835-5333

Fax.: +1-412-835-5336

e-mail: ashi@isgec.com

EUROPE

ISGEC Germany Office

Kreiten Strasse 25,

40470 Dusseldorf,

Germany

Tel. : +49-211-271-63 00

Fax.: +49-211-271-63 01

e-mail: vchadha@isgec.com

PRESSURE VESSELS & HEAT EXCHANGERS

   - Shell & Tube Heat Exchangers

   - Pressure Vessels

   - Boiler Drums

   - Reactors

   - Columns & Towers

   - Boiler Pressure Parts

   - Galvanising Baths or Kettles

- Fume Hoods

PRESSES

   - Straight Side Presses -

Mechanical

   - Straight Side Presses- Hydraulic

   - 'C' Frame Presses - Mechanical

BOILERS

   - Dump Grate Boilers

   - Travelling Grate Boilers

   - Atmospheric Fluidised Bed

Combustion Boilers (AFBC)

   - Circulating Fluidised Bed

Combustion Boilers (CFBC)

   - Oil / Gas Fired Boilers

   - Waste Heat Recovery Boilers

   - Deaerators

   - Spares

 

STEEL CASTINGS

   -  Hydro Turbine Castings

  -  Gas Turbine Castings

   -  Steam Turbine Castings

   -  Valve Castings

   -  Mn Steel Castings

   -  Ni - Hard Castings

   -  Pump Castings

   -  General Castings

   -  Sugar Mill Castings

   -  Cement Mill Castings

   -  S.G. Iron Castings

SUGAR PLANTS AND MACHINERY

   - Complete Cane Sugar Plants

   - High Performance Cane Mills

   - Process House Equipment

   - Bagasse Fired Boilers

   - Spares

 

IRON CASTINGS

  - Castings for Pump and

Compressor Industry

  - Castings for Chemical & Dye

Stuff Industry

  - Castings for Soda Ash Industry

  - Castings for Tool & Dies Industry

  - Castings for Machine Tools

Industry

  - Castings for Steel Plant Industry

  - Castings for Sugar Industry

 

LIQUIFIED GAS CONTAINER

   -  Model 'A'

  - Model 'B'

  - Model 'C'

  - Model 'D' (approved by DOT,

USA)

 

CONTRACT MANUFACTURING

   -  Custom Job Work

      (Heavy Engineering Equipment

as per Client's Designs        and

Drawings)

    

INDUSTRIAL RELATION

Industrial relation is used to denote the collective relationships between

management and the workers. Traditionally, the term industrial relations is

used to cover such aspects of industrial life as trade unionism, collective

bargaining, workers’ participation in management, discipline and grievance

handling, industrial disputes and interpretation of labor laws and rules and

code of conduct.

In the words of Lester, "Industrial relations involve attempts at arriving at

solutions between the conflicting objectives and values; between the profit

motive and social gain; between discipline and freedom, between authority

and industrial democracy; between bargaining and co-operation; and

between conflicting interests of the individual, the group and the

community”.

The National Commission on Labor (NCL) also emphasize on the same

concept. According to NCL, industrial relations affect not merely the

interests of the two participants- labor and management, but also the

economic and social goals to which the State addresses itself. To regulate

these relations in socially desirable channels is a function, which the State is

in the best position to perform.

In fact, industrial relation encompasses all such factors that influence

behavior of people at work. A few such important factors are below:

Institution: It includes government, employers, trade unions, union

federations or associations, government bodies, labor courts, tribunals and

other organizations which have direct or indirect impact on the industrial

relations systems.

Characters: It aims to study the role of workers unions and employers’

federations officials, shop stewards, industrial relations officers/ manager,

mediator/conciliators / arbitrator, judges of labor court, tribunal etc.

Methods: Methods focus on collective bargaining, workers’ participation in

the industrial relations schemes, discipline procedure, grievance redressal

machinery, dispute settlements machinery working of closed shops, union

reorganization, organizations of protes ts through methods like

revisions of existing rules, regulations, policies, procedures, hearing of labor

courts, tribunals etc.

Contents: It includes matter pertaining to employment conditions like pay,

hours of works, leave with wages, health, and safety disciplinary actions,

lay-off, dismissals retirements etc., laws relating to such activities,

regulations governing labor welfare, social security, industrial relations,

issues concerning with workers’ participation in management, collective

bargaining, etc.

INTRODUCTION TO THE PROJECT -(CONFLICT IN AN ORGANIZATION

( INDUSTRIAL RELATION )

Industry:

Industrial Disputes Act 1947 defines an industry as any systematic activity

carried on by co-operation between an employer and his workmen for the

production, supply or distribution of goods or services with a view to satisfy

human wants or wishes whether or not any capital has been invested for the

purpose of carrying on such activity; or such activity is carried on with a

motive to make any gain or profit. Thus, an industry is a whole gamut of

activities that are carried on by an employer with the help of his employees

and labors for production and distribution of goods to earn profits.

Employer:

An employer can be defined from different perspectives as:-

a person or business that pays a wage or fixed payment to other

person(s) in exchange for the services of such persons.

a person who directly engages a worker/employee in employment.

any person who employs, whether directly or through another person

or agency, one or more employees in any scheduled employment in

respect of which minimum rates of wages have been fixed.

As per Industrial Disputes Act 1947 an employer means:-

in relation to an industry carried on by or under the authority of any

department of [the Central Government or a State Government], the

authority prescribed in this behalf, or where no authority is prescribed,

the head of the department;

in relation to an industry carried on by or on behalf of a local

authority, the chief executive officer of that authority;

Employee: -

Employee is a person who is hired by another person or business for a

wage or fixed payment in exchange for personal services and who

does not provide the services as part of an independent business.

An employee is any individual employed by an employer.

A person who works for a public or private employer and receives

remuneration in wages or salary by his employer while working on a

commission basis, piece-rates or time rate.

Employee, as per Employee State Insurance Act 1948, is any person

employed for wages in or in connection with work of a factory or

establishment to which the act applies.

In order to qualify to be an employee, under ESI Act, a person should belong

to any of the categories:

o those who are directly employed for wages by the principal employer

within the premises or outside in connection with work of the factory

or establishment.

o those employed for wages by or through an immediate employer in

the premises of the factory or establishment in connection with the

work thereof

o those employed for wages by or through an immediate employer in

connection with the factory or establishment outside the premises of

such factory or establishment under the supervision and control of the

principal employer or his agent.

o employees whose services are temporarily lent or let on hire to the

principal employer by an immediate employer under a contract of

service (employees of security contractors, labor contractors, house

keeping contractors etc. come under this category).

Employment: The state of being employed or having a job.

Labor market:

The market in which workers compete for jobs and employers compete for

workers. It acts as the external source from which organizations attract

employees. These markets occur because different conditions characterize

different geographical areas, industries, occupations, and professions at any

given time.

Industrial Relation System

An industrial relations system consists of the whole gamut of relationships

between employees and employees and employers which are managed by

the means of conflict and cooperation.

A sound industrial relations system is one in which relationships between

management and employees (and their representatives) on the one hand, and

between them and the State on the other, are more harmonious and

cooperative than conflictual and creates an environment conducive to

economic efficiency and the motivation, productivity and development of

the employee and generates employee loyalty and mutual trust.

ACTORS IN THE IR SYSTEM

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the

right to hire and fire them. Management can also affect workers’ interests by

exercising their right to relocate, close or merge the factory or to introduce

technological changes.

Employees: Workers seek to improve the terms and conditions of their

employment. They exchange views with management and voice their

grievances. They also want to share decision making powers of

management. Workers generally unite to form unions against the

management and get support from these unions.

Government: The central and state government influences and regulates

industrial relations through laws, rules, agreements, awards of court ad the

like. It also includes third parties and labor and tribunal courts.

SCOPE OF THE STUDY :

The concept of industrial relations has a very wide meaning and connotation.

In the narrow sense, it means that the employer, employee relationship

confines itself to the relationship that emerges out of the day to day

association of the management and the labor. In its wider sense, industrial

relations include the relationship between an employee and an employer in

the course of the running of an industry and may project it to spheres, which

may transgress to the areas of quality control, marketing, price fixation and

disposition of profits among others.

The main issues involved here include the following:

1. Collective bargaining

2. Machinery for settlement of industrial disputes

3. Standing orders

4. Unfair labor practices

IMPORTANCE OF INDUSTRIAL RELATIONS

The healthy industrial relations are key to the progress and success. Their

significance may be discussed as under –

Uninterrupted production – The most important benefit of industrial

relations is that this ensures continuity of production. This means,

continuous employment for all from manager to workers. The resources are

fully utilized, resulting in the maximum possible production. There is

uninterrupted flow of income for all. Smooth running of an industry is of

vital importance for several other industries; to other industries if the

products are intermediaries or inputs; to exporters if these are export goods;

to consumers and workers, if these are goods of mass consumption.

Reduction in Industrial Disputes – Good industrial relations reduce the

industrial disputes. Disputes are reflections of the failure of basic human

urges or motivations to secure adequate satisfaction or expression which are

fully cured by good industrial relations. Strikes, lockouts, go-slow tactics,

gherao and grievances are some of the reflections of industrial unrest which

do not spring up in an atmosphere of industrial peace. It helps promoting co-

operation and increasing production.

High morale – Good industrial relations improve the morale of the

employees. Employees work with great zeal with the feeling in mind that the

interest of employer and employees is one and the same, i.e. to increase

production. Every worker feels that he is a co-owner of the gains of industry.

The employer in his turn must realize that the gains of industry are not for

him along but they should be shared equally and generously with his

workers. In other words, complete unity of thought and action is the main

achievement of industrial peace. It increases the place of workers in the

society and their ego is satisfied. It naturally affects production because

mighty co-operative efforts alone can produce great results.

Mental Revolution – The main object of industrial relation is a complete

mental revolution of workers and employees. The industrial peace lies

ultimately in a transformed outlook on the part of both. It is the business of

leadership in the ranks of workers, employees and Government to work out a

new relationship in consonance with a spirit of true democracy. Both should

think themselves as partners of the industry and the role of workers in such a

partnership should be recognized. On the other hand, workers must

recognize employer’s authority. It will naturally have impact on production

because they recognize the interest of each other.

Reduced Wastage – Good industrial relations are maintained on the

basis of cooperation and recognition of each other. It will help increase

production. Wastages of man, material and machines are reduced to the

minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher

production with minimum cost and higher profits. It also results in increased

efficiency of workers. New and new projects may be introduced for the

welfare of the workers and to promote the morale of the people at work. An

economy organized for planned production and distribution, aiming at the

realization of social justice and welfare of the massage can function

effectively only in an atmosphere of industrial peace. If the twin objectives

of rapid national development and increased social justice are to be

achieved, there must be harmonious relationship between management and

labor.

DUNLOP'S CONTRIBUTION TO INDUSTRIAL RELATIONS

One of the significant theories of industrial labor relations was put forth by

John Dunlop in the 1950s. According to Dunlop industrial relations system

consists of three agents – management organizations, workers and

formal/informal ways they are organized and government agencies. These

actors and their organizations are located within an environment – defined in

terms of technology, labor and product markets, and the distribution of

power in wider society as it impacts upon individuals and workplace. Within

this environment, actors interact with each other, negotiate and use

economic/political power in process of determining rules that constitute the

output of the industrial relations system. He proposed that three parties—

employers, labor unions, and government-- are the key actors in a modern

industrial relations system. He also argued that none of these institutions

could act in an autonomous or independent fashion. Instead they were

shaped, at least to some extent, by their market, technological and political

contexts.

Thus it can be said that industrial relations is a social sub system subject to

three environmental constraints- the markets, distribution of power in

society and technology.

Dunlop's model identifies three key factors to be considered in

conducting an analysis of the management-labor relationship:

1. Environmental or external economic, technological, political, legal

and social forces that impact employment relationships.

2. Characteristics and interaction of the key actors in the employment

relationship: labor, management, and government.

3. Rules that are derived from these interactions that govern the

employment relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements

in the field of industrial relations may be regarded as a system in the sense

that each of them more or less intimately affects each of the others so that

they constitute a group of arrangements for dealing with certain matters and

are collectively responsible for certain results”.

In effect - Industrial relations is the system which produces the rules of the

workplace. Such rules are the product of interaction between three key

“actors” – workers/unions, employers and associated organizations and

government

The Dunlop’s model gives great significance to external or environmental

forces. In other words, management, labor, and the government possess a

shared ideology that defines their roles within the relationship and provides

stability to the system.

Unitary Perspective

In unitarism, the organization is perceived as an integrated and harmonious

system, viewed as one happy family. A core assumption of unitary approach

is that management and staff, and all members of the organization share the

same objectives, interests and purposes; thus working together, hand-in-

hand, towards the shared mutual goals. Furthermore, unitarism has a

paternalistic approach where it demands loyalty of all employees. Trade

unions are deemed as unnecessary and conflict is perceived as disruptive.

From employee point of view, unitary approach means that:

Working practices should be flexible. Individuals should be business

process improvement oriented, multi-skilled and ready to tackle with

efficiency whatever tasks are required.

If a union is recognized, its role is that of a further means of

communication between groups of staff and the company.

The emphasis is on good relationships and sound terms and conditions

of employment.

Employee participation in workplace decisions is enabled. This helps

in empowering individuals in their roles and emphasizes team work,

innovation, creativity, discretion in problem-solving, quality and

improvement groups etc.

Employees should feel that the skills and expertise of managers

supports their endeavors.

From employer point of view, unitary approach means that:

Staffing policies should try to unify effort, inspire and motivate

employees.

The organization's wider objectives should be properly communicated

and discussed with staff.

Reward systems should be so designed as to foster to secure loyalty

and commitment.

Line managers should take ownership of their team/staffing

responsibilities.

Staff-management conflicts - from the perspective of the unitary

framework - are seen as arising from lack of information, inadequate

presentation of management's policies.

The personal objectives of every individual employed in the business

should be discussed with them and integrated with the organization’s

needs.

Pluralistic-Perspective

In pluralism the organization is perceived as being made up of powerful and

divergent sub-groups - management and trade unions. This approach sees

conflicts of interest and disagreements between managers and workers over

the distribution of profits as normal and inescapable. Consequently, the role

of management would lean less towards enforcing and controlling and more

toward persuasion and co-ordination. Trade unions are deemed as legitimate

representatives of employees. Conflict is dealt by collective bargaining and

is viewed not necessarily as a bad thing and if managed could in fact be

channeled towards evolution and positive change. Realistic managers should

accept conflict to occur. There is a greater propensity for conflict rather than

harmony.

They should anticipate and resolve this by securing agreed procedures for

settling disputes.

The implications of this approach include:

The firm should have industrial relations and personnel specialists

who advise managers and provide specialist services in respect of

staffing and matters relating to union consultation and negotiation.

Independent external arbitrators should be used to assist in the

resolution of disputes.

Union recognition should be encouraged and union representatives

given scope to carry out their representative duties

Comprehensive collective agreements should be negotiated with

unions

RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

OBJECTS ON WHICH GENERAL FUNDS MAY BE SPENTS :

Section 15 enumerates the objects on which general funds of a

registered Trade union shall be spent. Trade Union shall not spent the funds

on any other objects. Then the following : -

(a) the payment of salaries, allowances and expenses to officebearers

of the Trade union:

(b) the payment of expenses for the administration of Trade Union,

including audit of the accounts of the general funds of the Trade

union.

(c) The prosecution or defence of any legal proceeding to which the

Trade Union or any member thereof is a party when such

prosecution or defence is undertaken for the purpose of securing

or protecting any rights of the relations of any member with his

employer or with a person whom the member employs.

(d) The conduct of trade disputes on behalf of the Trade Union or any

member thereof.

(e) The compensation of members for loss arising out of trade

disputes;

(f) Allowances to members of their dependants on account of death

old age, sickness, accidents or unemployment of such members;

(g) The issue of, or the undertaking of liability under, policies of

assurance on the lives of members, or under policies insuring

members against sickness, accident or unemployment;

(h) The provisions of educational, social or religious benefits for

members (including the payment of expenses of funeral or

religious ceremonies for deceased members) or for the dependents

of members;

(i) The unkeep of periodical published mainly for the purpose of

discussing questions affecting employers or workmen as such;

(j) The payment in furtherance of any of the objects on which the

general funds of the Trade Union may be spent, or contributions to

any cause intended to benefit workmen in general, provided that

the expenditure in respect of such contributions in any financial

year shall not at any time during that year be in excess of one-

fourth of the combined total of the gross income which has up to

that time accrued to the general funds of the Trade Union during

that year and of the balance at the credit of those funds at the

commencement of that year; and

(k) Subject to any conditions contained in the notification, any other

object notified by the (appropriate government) in the (official

gazette)

CONSTITUTIONS OF SEPARATE FUND FOR POLITICAL

PURPOSES

A Registered Trade Union, may constitute separate fund, from

contributions separately levied for or made to that fund, from which

payments may be made for there promotion of civic and political

interests of its members, in furtherance of any of the objects specified in

sub-section (2).

Section 16(2) specifies the objects referred to above in sub-section (1)

are:–

(a) the payment of any expenses incurred, either directly or

indirectly, by a candidate or prospective candidate for election

as a member of any legislative body constituted under the

constitution or of any local authority, before, during or after the

election in connection with his candidature or election; or

(b) the holding of any meeting or the distribution of any literature

or document in support of any such candidate or prospective

candidates; or

(c) the maintenance of any person who is a member of any

legislative body constituted under the constitution or for any

local authority, or

(d) the registration of elections or the selection of a candidate for

any legislative body constituted under the constitution or for

any local authority, or

(e) the holding of political meetings of any kind, or the distribution

of political literature or political documents of any kind.

PRIVILEGES OF A REGISTERED TRADE UNION

These privileges are dealt with under sections 17,18 and 19 of the Act.

They are as follows :

(a) As to Criminal liability – Section 17 of the Act provides that

no office-bearer or member of a registered Trade Union

shall be liable to punishment under Sub-section (2) of

Section 120 B of the Indian Penal Code in respect of any

agreement made between the members for the purpose of

furthering any such object of the Trade Union as is specified

in Section 15, unless, the agreement is an agreement to

commit an offence. Trade Unions have a right to declare

strikes and to do certain acts in furtherance of trade dispute.

The protection is not available in cases of agreement to

commit an offence.

(b) As to civil liability – Section 18(1) provides that no suit or

other legal proceedings shall be maintainable in any Civil

Court against any registered Trade Union or any office

bearer or member thereof in respect of any act done in

contemplation or furtherance of trade disputes to which a

member of the Trade union is a party on the ground only

that such act includes some other person to break a contract

of employment of some other person or with the right of

some other person to dispose of his capital or labour as he

wills.

Immunity from tortuous liability – Sub-section (2) of

section 18 provides immunity from a tortuous liability to the

registered unions. A registered Trade Union shall not be liable

in any suit or other legal proceeding in any civil Court for any

tortuous act done in contemplation or furtherance of a trade

dispute by an agent of the Trade union if is proved that : -

Such person had acted without knowledge of;

or

Contrary to the express instructions of the

executive of the Trade Union.

In Dalmia Cement Factory Ltd. V. N.D. Ananji Bachar, it was

observed that Section 18 does not afford immunity to a Trade Union,

its office bearers or members, for an act of deliberate trespass.

(c) Contractual liability : Enforceability of agreements – Section

19 provides that notwithstanding anything contained in any

law for the time being in force, an agreement between the

members of a registered Trade Union shall not be void or

voidable merely by reason of the fact that any of the objects

of the agreement are in restraint of trade.

(d) The provision to this section lays down that provisions of

this section shall not enable any Civil Court to entertain any

legal proceeding instituted for the express purpose of

enforcing or recovering damages for the breach of any

agreement concerning the conditions on which any member

of the Trade Union shall or shall not –

(a) employ; or

(b) be employed; or

(c) work; or

(d) sell their goods; or

(e) transact business

RIGHTS OF MINORS TO MEMBERSHIP OF TRADE UNIONS

(i) Minor’s membership – Section 21 provide the membership of

registered Trade Union of a minor, but he must have attained

the age of fifteen years. But this is subject to any rules of the

Trade Union to the contrary, and may subject as aforesaid,

enjoy all the rights of member and execute all instruments and

give all acquaintances necessary to be executed or given under

the rules.

DISQUALIFICATIONS OF OFFICE BEARERS OF TRADE UNIONS –

These disqualifications are detailed under section21-A(1) according to

which a person shall be disqualified for being chosen as and for being a

member of the executive or any other office bearer of a registered Trade

Union if –

PROPORTION OF OFFICERS TO BE CONNECTED WITH THE INDUSTRY –

Section 22 lays down that not less than one-half of the total number of

the office-bearers of every registered Trade Union shall be the person

actually engaged or employed in an industry with which the Trade Union is

connected.

But the appropriate government may be special or general order,

declare that the provisions of this section shall not apply to any Trade Union

or class of Trade Unions specified in the order.

CHANGE OF NAME

Section 23 provides that any registered Trade Union may, with the

consent of not less than two-thirds of the total number of its members

subject to the provisions of section 25(see below), change its name.

AMALGAMATION OF TRADE UNION –

As per provisions of Section 24 provides that any two or more

registered Trade Unions may become amalgamated together as one Trade

Union with or without dissolution, or division of the funds of such Trade

Unions or either or any of them, provided that the votes of atleast one-half of

the members of each or every such Trade Union entitled to vote are

recorded, and that atleast sixty percent of the votes recorded are in favor of

the proposal.

Notice of change of name or amalgamation – Under sub section (1) of

Section 25, notice in writing of every change of name and of every

amalgamation, signed in case of change of name, by the secretary, and by

seven members of the Trade Union changing its name, and in the case of an

amalgamation, by seven member of each and every Trade Union which is a

party thereto, shall be sent to the Registrar, and where the head office of the

amalgamated Trade Union is situated in a different State, the Registrar of

such State.

Sub-section (2) of Section 25 provides that if the proposed name is

identical with that by which any other existing Trade Union has been

registered or, in the opinion of the Registrar so nearly resembles such name

as to be likely to deceive the public or the members of either Trade Union,

the Registrar shall refuse to register the change.

Sub-section (3) provides that if the Registrar is satisfied as to the

proposed name of the Trade Union, as required by Sub-section (2), noted

above, as also in respect of the compliance of the provisions of this Act

relating to change of name, he shall register the change of name in the

register referred in Section 8 and the change of name shall have the effect

from the date of such Registration.

EFFECTS OF CHANGE OF NAME AND OF AMALGAMATION –

As per provisions of Section 26 the change in the name of a registered

Trade Union shall not affect any rights or obligations of the Trade Union or

render defective any legal proceeding by or against Trade Union, and any

legal proceeding which might have been continued or commenced by or

against, it by its former name may be continued or commenced by or against

it by its former name may be continued or commenced by or against it by its

new name.

(2) An amalgamation of two or more registered Trade Unions shall not

prejudice any right of any such Trade Unions or any right of a creditor of

any of them.

DISSOLUTION

The procedure is given under Section 27 of the Act, sub-section (1)

lays down that when a registered Trade Union is dissolved, notice of

dissolution, signed by seven members and by the secretary of the Trade

Union shall within fourteen days of the dissolution, be sent to the Registrar,

and shall be registered by him if he is satisfied that the dissolution has been

effected in accordance with the rules of Trade Union, and the dissolution

shall have effect from the date of such registration.

Under Sub-section (2), it is provided that where the dissolution of

registered Trade Union has been registered and the rules of the Trade Union

do not provide for the distribution of the funds of the Trade Union on

dissolution, the Registrar shall divide the funds amongst the members in

such manner as may be prescribed.

PENALTIES AND PROCEDURE

Sections 31, 32 and 33 deal with the penalties, offences and cognizance.

As per provisions of Section 28 Retunes shall be sent annually to the

Registrar, on or before such date as may be prescribed, a general statement,

audited in the prescribed, manner, of all receipts and expenditure of every

registered Trade Union during the year ending on the 31st day of December

next preceding such prescribed date; and the assets and liabilities of the

Trade Union existing on the 31st day of December. Section 31 provides for

penalty for the default or failure to submit such returns or notices required

under the Act. If default is made by a registered Trade Union in giving such

notice or sending statement or other documents as required under the Act –

(a) every office bearer; or

(b) other persons bound by rules of the Trade Union to give or send

the same; or

(c) if there is no such office-bearer or person every member of the

executive of the Trade Union shall be punishable with a fine

which may extend to Rs Five and in case of continuing default,

with the additional fine which may extend to five rupees for

each week for the first week during which the default continues,

but the aggregate fine shall not exceed rupees fifty.

(2) Any person who willfully makes, or causes to be made, any false

entry in, or any omission from the general statement required by Section 28,

or in or from any copy of rules or of alternations of rules sent to the

Registrar under that section, shall be punishable with fine which may extend

to five hundred rupees.

Section 32 provides that any person who, with intent to deceive, gives

to any member of registered Trade Union or any person intending or

applying to become a member of such Trade Union any document

purporting to be a copy of the rules of the Trade Union or of any alternations

to the same which he knows, or has reason to believe, is not a correct copy

of such rules or alternations as are for the time being in force, or any person

who, with the like intent, gives a copy of any rules of an unregistered Trade

Union to any person on the pretence that such rules, are the rules of a

registered Trade Union shall be punishable with a fine which may extend to

two hundred rupees.

Cognizance – Section 33 provides that no court inferior to that of a

Presidency Magistrate or a Magistrate of the first class shall try any offence

under this Act. Cognizance can be taken only on a complaint by the

Registrar, or with the previous sanction of the Registrar or in the case of an

offence under section 32, mentioned above, by the person to whom the copy

was given.

LIMITATION

Such complaint must be filed within six months of

the date on which the offence is alleged to have been

committed.

MARXIST PERSPECTIVE

This view of industrial relations is a by product of a theory of capitalist

society and social change. Marx argued that:

Weakness and contradiction inherent in the capitalist system would result

in revolution and the ascendancy of socialism over capitalism.

Capitalism would foster monopolies.

Wages (costs to the capitalist) would be minimized to a subsistence level.

Capitalists and workers would compete/be in contention to win ground

and establish their constant win-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between

capital and labor, and sees workplace relations against this background. It

is concerned with the structure and nature of society and assumes that the

conflict in employment relationship is reflective of the structure of the

society. Conflict is therefore seen as inevitable and trade unions are a

natural response of workers to their exploitation by capital.

CAUSES OF INDUSTRIAL DISPUTES

The causes of industrial disputes can be broadly classified into two

categories: economic and non-economic causes. The economic causes will

include issues relating to compensation like wages, bonus, allowances, and

conditions for work, working hours, leave and holidays without pay, unjust

layoffs and retrenchments. The non economic factors will include

victimization of workers, ill treatment by staff members, sympathetic strikes,

political factors, indiscipline etc.

Wages and allowances: Since the cost of living index is increasing,

workers generally bargain for higher wages to meet the rising cost of living

index and to increase their standards of living. In 2002, 21.4% of disputes

were caused by demand

of higher wages and allowances. This percentage was 20.4% during 2003

and during 2004 increased up to 26.2%. In 2005, wages and allowances

accounted for 21.8% of disputes.

Personnel and retrenchment: The personnel and retrenchment have

also been an important factor which accounted for disputes. During the year

2002, disputes caused by personnel were 14.1% while those caused by

retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a

similar trend could be seen, wherein 11.2% of the disputes were caused by

personnel, while 2.4% and 0.6% of disputes were caused by retrenchment

and layoffs. In year 2005, only 9.6% of the disputes were caused by

personnel, and only 0.4% were caused by retrenchment.

Indiscipline and violence: From the given table, it is evident that the

number of disputes caused by indiscipline has shown an increasing trend. In

2002, 29.9% of disputes were caused because of indiscipline, which rose up

to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes

were caused due to indiscipline respectively. During the year 2003,

indiscipline accounted for the highest percentage (36.9%) of the total time-

loss of all disputes, followed by cause-groups wage and allowance and

personnel with 20.4% and11.2% respectively. A similar trend was observed

in 2004 where indiscipline accounted for 40.4% of disputes.

Bonus: Bonus has always been an important factor in industrial disputes.

6.7% of the disputes were because of bonus in 2002 and 2003 as compared

to 3.5% and 3.6% in 2004 and 2005 respectively.

Leave and working hours: Leaves and working hours have not been so

important causes of industrial disputes. During 2002, 0.5% of the disputes

were because of leave and hours of work while this percentage increased to

1% in 2003. During 2004, only 0.4% of the disputes were because of leaves

and working hours.

Miscellaneous: The miscellaneous factors include

  -   Inter/Intra Union Rivalry

  -   Charter of Demands

  -   Work Load

  -   Standing orders/rules/service conditions/safety measures

  -   Non-implementation of agreements and awards etc.

.

ANALYSIS OF INDUSTRIAL DISPUTES

The number of industrial disputes in country has shown slow but steady fall

over the past ten years. In 1998, the total number of disputes was 1097

which fell by more than half to 440 in 2006.It is being estimated that this

trend will continue in 2007 as well. To support this, only 45 cases of

disputes have been recorded during the first four months of 2007. This

significant decline is attributed to the serious attempts made by industries to

improve industrial relations with their workers. However, a deeper look at

the data reveals that the number of mandays (i.e., the industrial unit of

production equal to the work one person can produce in a day) lost due to

disputes has not come down as significantly. The country, on an average,

lost 25.4 million mandays of work annually between 1998 and 2006, which

might have affected its industrial output.

More than 2.14 lakh mandays were lost due to work stoppages in 23

industrial disputes during January to March 2007. Though there has been a

decline in the number of strikes, the country still witnessed some major

strikes between 2004 and 2006, like those in Honda, Escorts, Apollo, and

Skumars factories and in SBI bank.

On analyzing the data sector wise, it is clear that the private sector has

witnessed greater number of disputes as compared to the public sector. In

2005, only 57 disputes were recorded in public sector which resulted in a

wage loss of 79 Crores. In contrast to this, 399 disputes were recorded in the

private sector. In the recent past, maximum number of disputes has been

recorded in the manufacturing, agriculture and mining and quarrying

industries.

STRIKES

  A strike is a very powerful weapon used by trade unions and

other labor associations to get their demands accepted. It generally involves

quitting of work by a group of workers for the purpose of bringing the

pressure on their employer so that their demands get accepted. When

workers collectively cease to work in a particular industry, they are said to

be on strike.

According to Industrial Disputes Act 1947, a strike is “a cessation of work

by a body of persons employed in an industry acting in combination; or a

concerted refusal of any number of persons who are or have been so

employed to continue to work or to accept employment; or a refusal under a

common understanding of any number of such persons to continue to work

or to accept employment”. This definition throws light on a few aspects of a

strike. Firstly, a strike is a referred to as stoppage of work by a group of

workers employed in a particular industry. Secondly, it also includes the

refusal of a number of employees to continue work under their employer.

In a strike, a group of workers agree to stop working to protest against

something they think is unfair where they work. Labors withhold their

services in order to pressurize their employment or government to meet their

demands. Demands made by strikers can range from asking for higher wages

or better benefits to seeking changes in the workplace environment. Strikes

sometimes occur so that employers listen more carefully to the workers and

address their problems.

CAUSES OF STRIKES:

Strikes can occur because of the following reasons:

Dissatisfaction with company policy

Salary and incentive problems

Increment not up to the mark

Wrongful discharge or dismissal of workmen

Withdrawal of any concession or privilege

Hours of work and rest intervals

Leaves with wages and holidays

Bonus, profit sharing, Provident fund and gratuity

Retrenchment of workmen and closure of establishment

Dispute connected with minimum wages

TYPES OF STRIKE :

1. Economic Strike: Under this type of strike, labors stop their work to

enforce their economic demands such as wages and bonus. In these

kinds of strikes, workers ask for increase in wages, allowances like

traveling allowance, house rent allowance, dearness allowance, bonus

and other facilities such as increase in privilege leave and casual

leave.

2. Sympathetic Strike: When workers of one unit or industry go on

strike in sympathy with workers of another unit or industry who are

already on strike, it is called a sympathetic strike. The members of

other unions involve themselves in a strike to support or express their

sympathy with the members of unions who are on strike in other

undertakings. The workers of sugar industry may go on strike in

sympathy with their fellow workers of the textile industry who may

already be on strike.

3. General Strike: It means a strike by members of all or most of the

unions in a region or an industry. It may be a strike of all the workers

in a particular region of industry to force demands common to all the

workers. These strikes are usually intended to create political pressure

on the ruling government, rather than on any one employer. It may

also be an extension of the sympathetic strike to express generalized

protest by the workers.

4. Sit down Strike: In this case, workers do not absent themselves from

their place of work when they are on strike. They keep control over

production facilities. But do not work. Such a strike is also known as

'pen down' or 'tool down' strike. Workers show up to their place of

employment, but they refuse to work. They also refuse to leave, which

makes it very difficult for employer to defy the union and take the

workers' places. In June 1998, all the Municipal Corporation

employees in Punjab observed a pen down strike to protest against the

non-acceptance of their demands by the state government.

5. Slow Down Strike: Employees remain on their jobs under this type of

strike. They do not stop work, but restrict the rate of output in an

organized manner. They adopt go-slow tactics to put pressure on the

employers.

6. Sick-out (or sick-in): In this strike, all or a significant number of

union members call in sick on the same day. They don’t break any

rules, because they just use their sick leave that was allotted to them

on the same day. However, the sudden loss of so many employees all

on one day can show the employer just what it would be like if they

really went on strike.

7. Wild cat strikes: These strikes are conducted by workers or

employees without the authority and consent of unions. In 2004, a

significant number of advocated went on wildcat strike at the City

Civil Court premises in Bangalore. They were protesting against some

remarks allegedly made against them by an Assistant Commissioner

LOCKOUTS

A lockout is a work stoppage in which an employer prevents employees

from working. It is declared by employers to put pressure on their workers.

This is different from a strike, in which employees refuse to work. Thus, a

lockout is employers’ weapon while a strike is raised on part of employees.

Acc to Industrial Disputes Act 1947, lock-out means the temporary closing

of a place of employment or the suspension of work or the refusal by an

employer to continue to employ any number of persons employed by him.

A lockout may happen for several reasons. When only part of a trade union

votes to strike, the purpose of a lockout is to put pressure on a union by

reducing the number of members who are able to work.

For example, if a group of the workers strike so that the work of the rest of

the workers becomes impossible or less productive, the employer may

declare a lockout until the workers end the strike. Another case in which an

employer may impose a lockout is to avoid slowdowns or intermittent work-

stoppages. Occupation of factories has been the traditional method of

response to lock-outs by the workers' movement.

PICKETING

When workers are dissuaded from work by stationing certain men at the

factory gates, such a step is known as picketing. If picketing does not

involve any violence, it is perfectly legal. Pickets are workers who are on

strike that stand at the entrance to their workplace. It is basically a method of

drawing public attention towards the fact that there is a dispute between the

management and employees.

The purpose of picketing is:

to stop or persuade workers not to go to work

to tell the public about the strike

to persuade workers to take their union's side

GHERAO

Gherao in Hindi means to surround. It denotes a collective action initiated by

a group of workers under which members of the management are prohibited

from leaving the industrial establishment premises by workers who block the

exit gates by forming human barricades. The workers may gherao the

members of the management by blocking their exits and forcing them to stay

inside their cabins. The main object of gherao is to inflict physical and

mental torture to the person being gheraoed and hence this weapon disturbs

the industrial peace to a great extent.

ANALYSIS OF STRIKES AND LOCKOUTS

In 1990, 1,825 strikes and lockouts were recorded. As a result,

24.1 million workdays were lost, from which 10.6 million were lost to

strikes and 13.5 million to lockouts. More than 1.3 million workers were

involved in these labor disputes. The number and seriousness of strikes and

lockouts have varied from year to year. As can be seen from the below chart,

there has been a steep decline in the number of strikes and lockouts. This

continuous decline in strikes and lockouts indicates that the industrial

relations in India are improving. There were 227 strikes in 2005, resulting in

the loss of 10.81 million man-days, while the number of lockouts stood at

229 with a loss of 18.86 million man-days. In January-September 2006,

there were only 154 strikes and 192 lockouts across the country, as

compared to the statistics of 2005, which resulted in the time loss of 3.16

million man-days and 10.60 million man-days respectively.

The number of strikes and lockouts, taken together, was down by 4.4 per

cent in 2005. During 2005, West Bengal experienced the maximum

instances of strikes and lockouts (19216) followed by Kerala (3619) and

Rajasthan (19247). Industrial disturbances were concentrated mainly in

manufacturing (textile), financial intermediation, agriculture and mining and

quarrying industries during 2005.

Prohibition of Strikes and Lock-Outs

Employees are prohibited from striking according to the section 22 of

Industrial Disputes Act 1947. Employees, who are working in a public

utility service, cannot go on a strike without giving a notice of strike within

the six weeks before striking. They can not go on strike either within

fourteen days of providing the strike notice or before the expiry of the date

of strike specified in any such notice. The same rule applies to the

employers. Employers who are carrying on a public utility service can not

lockout any of their employees without giving them a prior notice within six

weeks before the lock out or within the fourteen days of giving such a

notice. Moreover, the notice of strike or lockout is to be given in a

prescribed manner showing the number of persons involved in the

strike/lockout.

The notice of strike or lockout is not necessary when there is already a strike

or lockout going on in the company. However, a notice should be issued on

the day on which the lockout is declared just to intimate the appropriate

authorities about the lockout. The employer is supposed to report the number

of notices of strikes received by him to the appropriate Government or the

authority prescribed by the government within the five days of receiving

such notices.

Illegal Strikes and Lock-Outs

A strike or a lock-out is illegal if it is declared in noncompliance with the

section 22 (as defined above) of Industrial Disputes Act 1947, that is, if the

notice period is not served or if the strike is held within the fourteen days of

issuing the notice of strike. If a strike or lockout has already taken place and

is being referred to a Board, the continuance of such a strike or lock out is

not illegal provided it is in compliance with the provisions of act. Moreover,

a lockout declared in consequence of an illegal strike or a strike declared in

consequence of an illegal lock-out shall not be deemed to be illegal.

Penalty for Illegal Strikes and Lock-outs

A workman who is involved in an illegal strike can be penalized with

imprisonment for a term extendable to a month or with a fine or fifty rupees

or both. In similar way, an employer who initiates and continues a lockout is

punishable with imprisonment extendable to a month or with a fine of one

thousand rupees or both. According to Section 25 of Industrial Disputes Act

1947, no person should provide any sort of financial aid to any illegal strike

or lock-out. Any person who knowingly provides such a help in support of

any illegal strike or lock-out is punishable with imprisonment for a term

which may extend to six months, or with fine which may extend to one

thousand rupees, or with both.

MEASURES FOR IMPROVING INDUSTRIAL RELATIONS

The following measures should be taken to achieve good industrial relations:

Strong and Stable Union: A strong and stable union in each industrial

enterprise is essential for good industrial relations. The employers can easily

ignore a weak union on the plea that it hardly represents the workers. The

agreement with such a union will hardly be honored by a large section of

workforce. Therefore, there must be strong and stable unions in every

enterprise to represent the majority of workers and negotiate with the

management about the terms and conditions of service.

Mutual Trust: Both management and labor should help in the

development of an atmosphere of mutual cooperation,

confidence and respect. Management should adopt a progressive outlook and

should recognize the rights of workers. Similarly, labor unions should

persuade their members to work for the common objectives of the

organization. Both the management and the unions should have faith in

collective bargaining and other peaceful methods of settling disputes.

Workers’ Participation in Management: The participation of

workers in the management of the industrial unit should be

encouraged by making effective use of works committees, joint

consultation and other methods. This will improve communication

between managers and workers, increase productivity and lead to

greater effectiveness.

Mutual Accommodation. The employers must recognize the right of

collective bargaining of the trade unions. In any organization, there

must be a great emphasis on mutual accommodation rather than

conflict or uncompromising attitude. One must clearly understand that

conflicting attitude does not lead to amicable labor relations; it may

foster union militancy as the union reacts by engaging in pressure

tactics. The approach must be of mutual “give and take rather than

“take or leave.” The management should be willing to co-operate

rather than blackmail the workers.

Sincere Implementation of Agreements. The management should

sincerely implement the settlements reached with the trade unions.

The agreements between the management and the unions should be

enforced both in letter and spirit. If the agreements are not

implemented then both the union and management stop trusting each

other. An environment of uncertainty is created. To avoid this, efforts

should be made at both ends to ensure the follow up of the

agreements.

Sound Personnel Policies: The following points should be noted

regarding the personnel policies. The policies should be:

o Formulated in consultation with the workers and their

representatives if they are to be implemented effectively.

o Clearly stated so that there is no confusion in the mind of

anybody.

o Implementation of the policies should be uniform throughout

the organization to ensure fair treatment to each worker.

Government’s Role: The Government should play an active role for

promoting industrial peace. It should make law for the compulsory

recognition of a representative union in each industrial unit. It should

intervene to settle disputes if the management and the workers are

unable to settle their disputes. This will restore industrial harmony.

Progressive Outlook: There should be progressive outlook of the

management of each industrial enterprise. It should be conscious of its

obligations and responsibilities to the owners of the business, the

employees, the consumers and the nation. The management must

recognize the rights of workers to organize unions to protect their

economic and social interests.

REFERENCES 1. Management of Industry Relations – Vijay Asdhir

2. Industrial Law – P.L. Malik

QUESTIONNAIRE

Q.1 Who is the cause of conflicts in the view of Workers ?

Manager Worker Trade union All Above

Q. 2 Who is the cause of Conflicts in the view of Manager?

Manager Worker Trade Union All Above

Q. 3 Strike & Lockouts are the solutions of conflicts between employee and employer ?

Yes No Depend on situation Dont Know

Q.4 Is Trade Union help to sought out the conflict or problems ?

Yes No Surely Not Sure

Q. 5 Is there is only hand of Trade Union to create Disputes ?

Yes No Not Sure Surely

Q. 6 Are You satisfy with the Environment of BHEL ?

Satisfy Not Satisfy Constant

Q. 7 How You face or tackle all the conflicts when it appears in BHEL ?

Strikes Lockouts Support of Trade Union

Settlement Peacefully

Q. 8 What steps taken by the BHEL to prevent Co. by appearing conflicts ?

Charge-sheet Settlement with Trade Union

Approval of Purposal

Q. 9 Is Registered Trade Union can Object For his Rights and liabilities ?

Yes No

Q. 10 Is there be any Govt. Role for dissolving Conflicts For Industrial Peace ?

Yes No Should be

Q. If the Settlement between Management and Trade Union is Not implemented then What Sincerely doing ?

Not Trust Resettlement