Human Resource Management

INDUSTRIAL RELATIONS

WHAT DO YOU MEAN BY INDUSTRIAL RELATIONS?

Industrial relations refer to the relationship between the manager and the employee.

J Henry Richardson defined Industrial Relations as:“Industrial Relations is an art, the art of living together for the purpose of production. The parties while working together learn this art by acquiring the skills of adjustment.”

The main parties involved in it are:• Employees and their organizations like Trade Union• Employers or the Firm• Government

INDUSTRIAL DISPUTES

Industrial dispute means any dispute or differences between employer and employer, employers and workmen or workmen and workmen which is connected with employment or non-employment or terms of employment or with the conditions of any worker.

The various types of Industrial Disputes are:• Strike• Lockout • Gherao

CAUSES OF INDUSTRIAL DISPUTES

The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes.

Economic Causes• Wages, bonus and

allowances• Working Hours, Without

Pay Leaves• Unjust Layoffs

Non-Economic Causes• Victimization of Workers• Ill Treatment by Staff

Members• Sympathetic Strikes• Political Factors• Indiscipline

SETTLEMENT OF INDUSTRIAL DISPUTES TRHOUGH COLLECTIVE BARGAINING

• It refers to the process of decision making and democratic working.

• It is the process of negotiation between the management and employees to establish mutually agreeable working condition.

• It is a collective and continuous process which aims to form stable relationships.

• It does not only involve establishing an agreement, but also implementing it.

• It is a flexible approach.

Case Study

Maruti Suzuki Manesar: An Industrial Relations

Crisis

Background

On 18 July 2012, auto factory workers in Maruti’s Manesar plant attacked supervisors and started a fire that killed a company official and injured 100 personnel, including two Japanese Expatriates.

The main causes responsible for this tragedy were:• A caste slur(later discredited) by a supervisor against a worker• Failed negotiations regarding new demands by workers.

The company has had several incidents of employee protest, but never of this magnitude. The incident is worst ever for Maruti Suzuki which began operations in India in 1983.

INCIDENTS• Factory building and many cars were burnt which killed a manager and left a

100 injured. • 2 Japanese Officials Injured• The violent mob injured 9 policemen trying to control the situation.• The Hands and Legs of HR Manager Awanish Kumar Dev were broken, as a

result he could not move and the building was set ablaze, charring him to death.

AFTER EFFECTS• An FIR was filed with Police leading to 91 Employees getting arrested under

murder charges.• CCTV Recordings was used to determine the sequence of events and know

the identity of people involved.• Lockdown of the Manesar plant was undertaken and all employees were

suspended indefinitely. • The shutdown of the plant incurred a loss of ₹75 Crores each day for Maruti

Suzuki Ltd and the plant damages totalled upto ₹500 Crores.

What Maruti Could Have Done

Diverting Attention: Position the Haryana Government's inaction on Labour Laws

Video: A day in the Life of a Maruti Worker in improved conditions

Identify a Credible Spokesperson to defend the image of the company.

Rebuild Maruti’s India Connect: Reduce Japanese influence on Indian operations.

Maruti CSR campaign to prevent protest at grassroot levels

Insights

The need to use mature approach to Industrial Relations

Industrial Relations require a proactive management

The ability to handle and resolve a conflict is a business requirement

Priyanshu GuptaBMS Sem III13MG4535

THANK YOU

Priyanshu GuptaBMS Sem III13MG4535

THANK YOU