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PURPOSE OF THE PROJECT

The purpose of the project is to understand and study theactual reasons of the labor unrest in Mehra Bandhu

Fashions (apparel industry) and identify critical factorswhich caused them. It is also important to suggest a broadplan to find alternative solutions for this problem and give

recommendations to the industry to address the sameissue.

Industry Project Labor issues in apparel industry

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ACKNOWLEDGEMENT

With profound regard I gratefully acknowledge myrespected course teacher Mr.S.C Kapoor, for his generoushelp and day to day suggestion during preparation of thereport and for guiding and correcting various documentsof mine with attention and care. He has taken pain to gothrough the project and make necessary correction as andwhen needed.I like to thank my friends and many individuals, for their

enthusiastic encouragements and help during thepreparation of this report us by sharing ideas regardingthis subject and for their assistance.


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DECLARATION

I here by declare that the project work Identifying andRectifying the labor issues in the apparel industrysubmitted to Pearl Academy of Fashion is an originalresearch and work done by me under the guidance of Mr.S.C Kapoor and Ms.Shazia Amanat.

Shobhit GoelFBM- 6(80155)&&&&&&&


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TABLE OF CONTENTS

S no. Topic PageNumbe

r

1. Executive Summary 6

2. Introduction (Chapter 1) 8-14

3. Literature Review (Chapter 2) 15-21

4. Research Methodology (Chapter 3) 22

5. Results and Discussion (Chapter 4) 23-40

6. Summary and Conclusion (Chapter 5) 41-42

7. References 46

8. Annexure 47


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EXECUTIVE SUMMARY

The primary concern of this project is to identify andrectify the labor issues and reason behind the unrest facedby the company. This project focuses on the actualreasons of the labor issue and to find the solution so as togive adequate recommendations.

In such a competitive business environment the garment

industry is facing lots of problems in context ofproductivity .The production suffers because of manyreasons despite of having a skilled labor in industry.

The reasons to their problem should be knownimmediately so that necessary stops could be taken inorder to prevent the damage which can be caused due tothe problem. One key factor among many others ofworkers efficiency is Motivation. People are different in

their needs thus their motivations are different.This project is an effort to examine the effect of motivationparameters , award system , incentives being given to heemployees , communication ways, and hence to increasethe productivity of workers of garment manufacturingindustry.

Primary data is to analyze the worker efficiency andfactors leading to low productivity are collected through

questionnaires from the labor and in depth interviews withthe supervisor of the company.

Secondary data is collected from the net and in form ofarticles in the books.


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CHAPTER 1

INTRODUCTION

Are the labor unions back?. The riot that followed the labormanagement dispute in Gurgaon could be the first majorsign of things to come. After a decade-and-a-half ofmarket friendly policy changes, the union seems to besticking their neck out again to ensure they are being

heard. Some says the left parties in power are the forcebehind this resurgence, the central unions disagree. Apeace pipe is being passed around and the warringfactions appear momentarily happy to take a drag as theyput behind them the images of mayhem that hit theindustrially flourishing Gurgaon-Manesar region inHaryana. But behind the wall of silence, tremors can stillbe felt. The question on everyone's mind is how to ensurethat what happened in Gurgaon does not happen

again.These are the clear signs of tide of labor unrest tocome.


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It is a matter of controversy whether the predominantfactors underlying labor unrest are economic or non-economic. It has been concluded that so long as incomeremained the all important means for satisfying human

wants and needs, wage would continue to be majorconsideration in labor unrest.

1.1 NEED OF THE STUDY

The reason I chose to work on the labor issues was due tothe personal firsthand experience I had with my dad in myown factory. It was during the month of June, 2010 thatare labor had gone on strike due to some misguidancecreated by the trade union of Haryana state. (Since, the

factory MEHRA BANDHU FASHIONS is located in Gurgaon,Haryana.) It has become a common trend now-a-daysSHORTAGE OF LABOR, due to which there are highdemands put forward by the labor and that becomes anissue with the top management as to whether they shouldlet these demands get fulfilled or they should suppressthem in such a tactful manner so that the labor stays aswell as does not demand more. But at last, its theproductivity that matters, therefore the top management

faces a dilemma in sorting out the issues related withlabor. Not many organizations have come out with abalanced way of handling the issues related with labor,that is why, I chose to find a solution that can be followedso that both the top management as well as the labor arequite satisfied with the organization and they understandthe needs of each other and the importance of theorganization and help increase the productivity and reducethe factors due to which we face decrement inproductivity.


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Ultimately, it all boils down to how the labor issues arerelated with productivity, which helps manufacturers,make more business. And no business is a success if itgoes in loses. We also need to understand the basic to the

specific causes of the labor problem and the strategy tomanage situation in the tome to avert crisis, whichultimately may be too damaging for the organization as awhole.

1.2 PROBLEM AREAS TO BE VISITED

There were some serious loses faced due to this strike oflabor like: delay of shipments, Loses incurred during thesame, Hiring contract labor for getting the work done,Losing out on some most precious buyers, etc.. And that iswhy I wanted to take up the challenge of finding analternate solution to this issue through this project. As thisissue, was beyond self-classification. Many organizationshave faced this issue of losing out on customers due to

various reasons like: Delay in the shipments; Low-efficiency of the labor, hence affecting the quality ofproduction; etc.And the list goes on and on. So, in order to narrow it down,I chose to work on the issues caused in my factory due towhich the labor strike happened. Since, the labor strikewas an eye-opener for me so concentrating andrecommending a solution on the factors that lead to thestrike is the best way by which I can make some

contribution towards my organization. Therefore, I willfocus on the issue like: What made the labor go on strike?


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What were the demands raised by the labor to put off thestrike? What if we hire a contract labor? What are theconsequences of switching from permanent to contractlabor system? Should I fulfill the demands of the

permanent labor? Can I cut down on the number of labor Ihave in the company? What will be the impact of cuttingdown the number of labor? What motivation can I providethem so that they do not absent themselves from workingin the factory?

1.3 PURPOSE OF THE STUDY

To study the problems visible related with the labourin apparel industry To find the possible remedies


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1.4 SIGNIFICANCE OF THE STUDY

India has made a name for itself as a garmentmanufacturing centre. The textile and garment industrycontributes majorly in Indias export earning andmaximum amount of earning comes from garments exportalone.Indias niche in the global garments market has beencarved out at the cost of many workers in the industry.

The study of the labor issues is important because thegarment industry is labor intensive sector and this studycan help to prevent the labor problems ranging fromabsenteeism to labor strikes. (The main reason for suchproblems is the socio economic conditions in which ourlabor force lives and they feel that there is no job securityand are constantly under threat of being fire.)This allhappens as sometimes the management acts insensitive


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towards the labor and asks for more work due to the stiffcompetition in the market.

The study helps us (management) to solve the problem atearly stage and the management checks that there is no

ignorance towards the labor and their problems. Thisstudy also helps the management in knowing the specificareas in which problems occur and in which areas thechange is required in the management itself as well as thelabor department.

This study is important to know as it tells us bout the laborforce we are handling on the daily basis .As truly quotedhappy and content employee lead to high profitability andproductivity. The analysis of the study can help the HR

department to set the right wages and salaries and alsohelps to set the right size of the labor force needed andwhere it will be required by the manufacturing unit.According to the study the labor output of the firm can bedecided helping the owners in their projects and orders.Lastly, it helps to maintain and increase the quality ofrelationship between the top management and the labordepartment.

1.5 RESEARCH OBJECTIVES

To identify the types of problem in the industryrelated to labour. (Social or legal; Motivational; workenvironment) To work out strategy to address these problems To identify any specific change required in themanagement policy in managing Human Resources


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1.6 HYPOTHESIS

H1-Lack of well defined HR policies and untrainedsupervising staff are the factors in the labor problem inapparel industry.

H2-Faulty recruitment policies and lack of clarity inorganization vision can become instrumental inaggravating labor problems.

H3-Selective hiring is positively related to firm growth.


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H4-The extent of training and development will bepositively related to organization growth and individualdevelopment.

H5-Absence of a well defined grievance managementprocedure adds on to the pile of labor problem.

CHAPTER 2

LITERATURE REVIEW

No industry can be dispute free. Garment industry is notan exception. It has been more of a traditional one. Theconcept of professionalization is weak; it needs a lot to bedone. It is more on technical side .The industry is always

influenced by the prevailing trend of HR practice, wagerate, norms and facilities trends in the area. Garment


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industry in India has to face this challenge more becauseits labor is lacking a professional backdrop.Several researchers have analyzed many aspects ofgarment industry. Of the various aspects of the industry

the reason behind an industrial dispute can be categorizedinto ECONOMIC and NON ECONOMIC factors. The differenttypes of economic causes are related to monetarycompensation like salary, wages, allowances, bonus,working hours, working conditions, leave, medicalbenefits, and holidays without pay, illegal termination, andrefusal of employment, retrenchments and unjust layoffs.On the other hand, political factors, sympathetic strikes, illtreatment by other workers of the company, indiscipline

etc. come within the purview of non-economic factor whichoften lead to an industrial dispute or a major labor issue.

Salary, wages and other allowances:With the increase in cost of living index, employees/workers constantly bargain with the management toincrease their salary/ wages in order to meet the everrising cost of living index. However, it is to be noted thatthe desire to upgrade the standard of living is a natural

tendency in human beings. More than 25% of industrialdisputes and labor issues are result of demand forincreased salary/ wages.

Retrenchment and personnel issues:A very nominal % of the industrial disputes are caused byfactors like retrenchment and layoffs while others becauseof the industrial disputes caused by personnel.

Indiscipline and misconducts:One of the leading causes of industrial disputes and laborproblems in the industries is due to misconducts,indiscipline and often violent behaviors of the workmentowards the company. And unfortunately, this trend ofindiscipline and misconducts is moving towards an upwardgraph. Around 50% of the industrial disputes are direct

results of misconducts of the employees/ workers.


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Bonus, Working hours and other criteria:Major number of industrial disputes is due to demand forbonus. Though slowly, this trend of disputes arising out ofdemand of bonus is ever increasing. Moreover, factors like

working hours and leave lead to less % of industrialdisputes.

THE MAJOR LABOUR ISSUES

The Labor issues that exist globally are mainly because ofthe inevitable consequences of the modern factory

system. They are:-i) It has made workers powerless with all the decision


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making process and control over production relateddecisions vesting with the ruling entrepreneur.ii) It has also made jobs meaningless. They have becomeso much specialized that they require very little skill on

the part of the workers and give them no opportunity todemonstrate all the skills that they possess Theyexperience that their jobs are becoming more or lessmonotonous in nature.iii) The jobs today have become more mechanized andthus the workers feel that they are just there to push thebuttons and thus the interest level and the dedication hasdeteriorated immensely in the recent times. The humanaspect in the job is missing.

iv) The workers also feel that they should have some sayin the decisions concerning their jobs.

The causal factors behind increasing discontent anddissatisfaction that is prevalent among the Labor andworkers all over the world, even though there has been somuch that has been done to increase the standard of laborworking conditions and there has been the establishmentof various Labor Welfare Organizations, is somethingwhich should be paid proper heed to. Also we all, or those

concerned need to analyze the main aspects which shouldbe concentrated upon so as to eliminate or to alleviate thelabor Issues.

The central questions on which emphasis should belaid are as follows:-i) What effect does workers participation in managementhave in dealing with the Global Labor Issues?ii) How effective are the Trade Unions and the role andscope of them in eliminating the various problems that

arise out of the employee-employer contract and variousother related problems?iii) Why there is an increased discontent among theworkers even though much has been talked and done fortheir welfare including the setting up of various Nationaland International level Labor Welfare Organizations?iv) What effect did the Industrial Revolution andMechanization have on the welfare of the Labor?


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THE BANGLADESH ISSUES

The tremendous success of readymade garment exports

from Bangladesh over the last two decades has surpassedthe most optimistic expectations. Today the apparelexport sector is a multi-billion-dollar manufacturing andexport industry in the country. The overall impact of thereadymade garment exports is certainly one of the mostsignificant social and economic developments incontemporary Bangladesh.But sooner or later Bangladesh also suffered from thelabor issues /labor unrest. To

Make it evident the thus we have the following review:The garments sector witnessed recurring violence inBangladesh. In recent times (June-July 2010), strings ofincidence had taken place. Some incidents have paralyzedthe whole Dhaka city. The workers took street, ran amok.Police violently swooped on them, water canon, rubberbullets and baton charges could not stop the workers fromstaging spontaneous demonstration. Generally inBangladesh, the major reasons of sudden outburst,

against the backdrop of accumulated anger andimmeasurable plight of the workers, are directly linked tolow wage, unpaid wages and overtime.Seventy two incidents of labor unrest had taken placefrom January 1 to June 30, 2010. The incidents left at least988 workers injured in police actions while 45 workerswere arrested and more than 10,000 were sued and atleast 78 workers were sacked.

A series of incidents had also taken place in and outskirtsof Dhaka until mid- July leaving hundreds of workersinjured.A total of 41 incidents occurred in connection with thedemand for payment of their dues. In 13 cases, theworkers took to streets to protest at the killing or tortureon their colleagues. Among others, declaration of lay-off orclosure, and termination and curtailment of leave orholiday were the causes of demonstrations and unrest. Of

the incidents, 13 occurred in January, three in February,seven in March, twenty-two in April, eleven in May and


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sixteen occurred in June.

The apparel sector experienced severe labor unrest in thebeginning of this year. In the first week of January,

thousands of workers in Mirpur and Pallibi areas of Dhakatook to streets to protest at the killing of a worker inside afactory.Authorities suddenly shut down the factory withoutnotifying workers. As the closure was unannounced anduninformed workers who came to attend work in finemorning found a notice hanging in the factory gate andfactory gate was closed. Factory was closed withoutpaying monthly wage of the workers.

Also we can state the reasons behind labor issues are asfollows:

Compared to other countries, India has much greater needand importance of labor welfare work. Such a condition iscaused by certain deficiencies in Indian labor force thatare not found in its counterpart in other countries. It isthese defects of deficiencies that increase the importance

of labor welfare activity in the country. Briefly, thefollowing are the reasons why labor welfare work in Indiaassumes greater importance than in other countries.

LACK OF STRONG LABOUR UNION MOVEMENT

In India, even today the workers are no united into a class.Keeping in view the numbers, labor Union movement is

still in its infancy. Even in the labor union that does exist,there is a lack of enlightened leadership, and there is nounity between these unions themselves. In absence ofproperly organized labor Union the workers can neither,place their demands effectively before the employer, norcan they think clearly and systematically of their owninterests. As this is force lacking in India, it is essentialthat the welfare of laborers in the country be efficientlylooked after by the employers and the Government.

ILLITERACY:


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As compared with other countries, the percentage ofeducated workers is very low, most of them beingilliterate. Consequently, they are not in a position to

receive advanced industrial training, understand theproblems in industries their own interests and those ofnation as a whole. This can prove a source of harm notonly to the workers but also to the country. Henceefficient, and become responsible citizens of the country.

PROBLEM OF ABSENTEEISM AND MIGRATION

Compared to the workers of other countries the Indian

laborer is more restless and does tendentious towardsfrequent migration because life in the town does notprovide for his needs, and the atmosphere in general doesnot suit him. Also due to inadequate level of wages thelaborer cannot comfortably settle down in one place. Thismay in turn also give rise to Absenteeism. This workersmigratory tendency can be curbed by providing him withadequate facilities and conditions, and this also shows apositive effect over the absenteeism in the factory.

POOR HOUSING CONDITIONS

The worker's houses are far from the factories. They werebuilt really quickly and cheaply. The houses were cheap,most had between 2-4 rooms .There was no running wateror toilet. The household rubbish was thrown out into thestreets. Housing conditions like these were perfect

breeding grounds for diseases.

LOW LEVEL OF HEALTH AND NUTRITION

The Indian worker as compared with his counterpart inmost European countries is unhealthy and ill fed. Thisshows a definite affect over the production potential.Hence, he is very great need of inexpensive nutritive food

and good facility in case of hospitalization.


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EXTREME POVERTY

The percentage of people under the poverty line in our

country is comparatively high than other countries. So thestandard of living is very low. An Indian worker is unable toprovide a healthy living for his family and in the case offfemale workers she is not provide with assistance in caseof need. Hence, the labor welfare has much to do in thecountry. It must assist them by providing them maternitybenefits, in old age i.e., provident fund, pensions andgratuity etc.

LACK OF TRAINING

As the percentage of trained workers in India is very low, itis necessary to have training facilities for such a vast laborforce.

LACK OF HEALTHY RECREATION

Healthy recreation is also at a premium in the country, theefficiency of labor force is diminished by energy beingemployed in all kinds of undesirable channels. Hence, it isessential that recreation and enjoyment of a healthy kindbe provided.

INDUSTRIAL BACKWARDNESS OF INDIA

In India, industrial progress is being aimed through themedium of the five year plans, but industrial progress isdependent on the efficiency of the labor force. The welfarework motivates the workers and maintains efficiency andproductivity. So, we can say that the importance of theseactivities is great for India in comparison to westerncountries.

Lack of management is HR practices, unprofessionalsupervisory staff, and unsound HR policies as recruitment,


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performance appraisal, and lack of grievancemanagement system.

CHAPTER 3

RESEARCH METHODS

TYPE OF RESEARCH

OBJECTIVES:

R.O.1 - To identify the types of problem in the industryrelated to labour. (Social or legal; Motivational; workenvironment).

R.O.2 -To work out strategy to address these problems.

R.O.3-To identify any specific change required in themanagement policy in managing Human Resources

RESEAR

CH

OBJECT

IVE

RESEAR

CH

DESIGN

SOURC

E TYPE

DATA

COLLECTIO

N METHOD

SAMPLE

UNIT

SAMPL

E SIZE

SAMPLE TECHNIQUE


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R.O.1 EXPLOR

ATORY

SECON

DARY

DATA

ARTICLES

FROM THE

INTERNET

- - -

R.O.2 DECRIPT

IVE

PRIMA

RY

DATA

QUESTIONN

AIRE

Labor 30 Convenience

R.O.3 DESCRIP

TIVE

PRIMA

RY

DATA

IN-DEPTH

INTERVIEW

Supervisor 2 Quota

CHAPTER 4

RESULTS AND DISCUSSION

DATA ANALYSIS

2. Marital status:


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3. Age:

6. Since how long are you working in this company?

Conclusion:Most of the labor working is in the company since 6months. This shows that there is no stability in the workingof the labor.


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7. How much satisfied are you with your job? Highly satisfied

Satisfied

Neutral Dissatisfied

highly dissatisfied

Conclusion:Only 27% are satisfied and majority (56%) are neutral


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towards this statement, because most of them were just 6months old in the company so, they did not have a clearview on this statement.

8. What do you think about the working conditions of thefactory?

Satisfactory

Unsatisfactory Scope for improvement

Conclusion :

Majority of the labor (67%) are satisfied with the workingconditions of the factory. None thought that there was a


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scope for improvement.

9. Are you satisfied with the welfare measures adopted bythe company?

Highly satisfied Satisfied

Neutral Dissatisfied highly dissatisfied

Conclusion:Majority (56%) of the labor was neutral to this statement


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because most of them not aware of the welfare measuresof the company and some were afraid to even suggest totheir supervisor.

10. Do you feel your work is tiresome? Strongly agree Agree Neutral Disagree

Strongly Disagree

Conclusion:It was a neutral opinion because the workers were afraidof losing their jobs.


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11. Do your colleagues help you in case of problem?

Yes

No

Conclusion:Most of the labor voted yes (63%). This shows thatcolleagues are helpful to each other.


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12. is your salary adequate?

Yes No

Conclusion:Most of the labor is satisfied with their wages and only27% expect a little higher wage from the managementbecause of their job profile.


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13. Are you satisfied with the allowance /bonus providedby the company?

Yes No Scope to improve

Conclusion:38% of the labor expects more allowances/ bonus from thecompany because they want monthly allowances/ bonusmore than the yearly allowances/ bonus.


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15. Are you willing to have a training before you join or ind middle of your job?

Yes

No

Conclusion:

57% of the labor voted yes, this shows that the workersare willing to have a training session and the managementmust look after it.


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16. Does your supervisor listen to your problem?

Yes

No Sometimes

Conclusion:

Supervisor is sometimes (50%) helpful towards theworkers and their problems are solved at the supervisorlevel.


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17. Is he able to find solutions to your problems?

Yes

No

Sometimes

Conclusion:

This shows either the supervisor isnt given the authorityor he has to be changed.


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18. How often when your work related problems are notsolved you go to higher authorities?

Always

Never

Sometimes

Conclusion:When the supervisors are co-operative enough then thelabor issues are taken to the higher authorities.


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19. Do you think top management is aware of your

problems?

Yes

No cant say

Conclusion:This shows the communication gap between the topmanagement and lower management, means supervisorylevel is a weak link


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20. What type of problems you find is solved by top

management?

Wages

Welfare

Working problems

Conclusion:Wage issues are mostly looked after the top managementand it needs to be revised.


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21. What type of problems you think should be solved byyour supervisor? (Tick in order of preference)

Wages

Work related

Medical

Leave

Welfare

Disputes with colleagues

Increment

Personal

Conclusion:Large % seeks for the leave permission from their

supervisors and the rest options follows.


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22.Do u have a grievance procedure in the company?

Yes

No Not aware

Conclusion:This shows that most of the labor isnt aware of thegrievance procedure of the company.


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INTERVIEW WITH THE SUPERVISOR

Following are the analysis of the in-depth interview:

There is a hard felt need of motivation of the workerin the garment manufacturing industry. This isdepicted by the fact that 82% of the respondents feelthat motivation of workers is needed in theorganization.

Most of the respondents believe that motivation isneeded to improve quality of production. Some alsothink that it is necessary to meet company goals.Motivation, thus, is required to improve quality ofproduction as the data collected proves thatproductivity has increased by considerable amountafter the workers have been motivated.

However, there are respondents who believe thatmotivation is not required in the organization

because they feel that workers are willing to take jobresponsibility and the quality of production is up tothe required standard.

The companies are also concerned about the welfareof the workers. The companies are providing facilitieslike canteen, bus service to commute from home toworkplace and back as well as medicine facility.


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CHAPTER 5: CONCLUSION & RECCOMENDATION

On analyzing, the response it was found that large

number of employees are dissatisfied with the work.

On the neutral basis, the employees have an opinion

that the stress is a part of their work life.

The workers feel boredom in their work life and do

not have time for their personal activities.

56% of the employees are neutral towards the

welfare measures adopted by the company.

Absenteeism is also found in the company due to the

laid back attitude of the employees.

37% of the employees feel that their colleagues do

not help them in case of their personal problems.

There was lack of communication from both the ways

top level to the lower level.

The sense of belonging was missing and involvement

of the management was less.

It was found that there was lack of motivation in the

company amongst the employees.

Even lack of grievance management was found in the

company.

The company does not provide any kind of rewards to

its employees. Workers were not given incentives

according to their expectations.


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RECCOMENDATIONS

The management must intervene in day to day

activities of the employees. They should provide full-

fledged support, guidance and encouragement.

The management must provide training program to

the employees at a frequent basis.

The management must further scrutinize the

response of the employees after the implementationof the training program.

Over-loaded work atmosphere must be avoided, as it

may create a lot of stress related problems.

Employees must be encouraged for their activity and

innovative outlook towards their job assigned.

Welfare measures of the employees should be

improved so as to make the employees more

satisfied and contented. A satisfied employee will be

more committed to the organization.

Medi-claim policies, weekly or monthly medical

check-ups should be provided to the employees in

order to make them physically fit for the

organization.

Their views and suggestions should be taken so as to

make them feel important and needed.

Motivation should be there as it creates a sense of

belonging and the workers feel that they are the part

and parcel of the organization.

Rewards should be given to motivate employees in

order to increase their productivity.


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Ip Renewed

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