CASE STUDIES IN INDUSTRIAL RELATIONS
Case No. 1:
In a Factory employing 300 workmen, there is a very strong Union led by the Bharatiya Kamgar Sena. The previous settlement had expired on 31st of March 2002. The Union had demanded a wage increase of Rs. 2000 per month per workmen. The Management had told the Union Committee Members that it was not in a position to pay such a hefty increase since the Company was facing recession on account of competition arising out of the recession that was prevailing in the market. The Management however told the Union that it was prepared to give an increase of Rs.800 per month per workman for which they would have to give an overall improvement in productivity of 10%. The Union did not accept the offer of the Management. It told the Management that their minimum expectation is Rs. 1500 per month per workmen without any condition of improvement in productivity. They can think of improvement in productivity for any offer above Rs.1500 per month. This led to a stalement. The Workmen under the instructions of the Union resorted to a slow down in work.
They were found loitering about here and there having informal meetings and on many occasions refused to carry out the lawful and reasonable orders of the superiors. The productivity of the Factory had fallen down to 50% and it became difficult for the Management to carry out the activities in such a tense atmosphere.
The Managing Director of this Company is very much upset with the way the things are going on in the Factory. He tells the Chief Personnel Manager of the Company to chalk out a plan of action to deal with the situation.
As the Chief Personnel Manager of this Company chalk out a plan of action you feel suitable to deal with the situation.
Case No. 2
Sunil Deshpande T.No. 2121 is working as a turner for the last 15 years in a Chemical Industry employing 1400 employees. The wages are distributed on the 10th of each month in this concern.
Sunil Deshpande was on privilege leave from 4th to 11 February 2002. He reported for duty in the second shift at 3.00 p.m. on 13th February, 2002. Monday being the date for payment of unpaid wages, Sunil Deshpande went to the cash counter to collect his wages. The Cashier noted Sunil Deshpande’s ticket number and searched for his wage packet and he found that the said wage packet was already issued. The Cashier told Sunil Deshpande that he was already paid his wages.
Sunil Deshpande was surprised and told the Cashier that he had yet to collect his wages and that’s why he had come. On this the Cashier showed Sunil Deshpande the wage slip bearing his signature. After some time, the Cashier asked for the identity card from Sunil Deshpande to check up the validity of the signature. Sunil Deshpande said that he had lost his identity card but added that the signature on the payment slip was not his.
Sunil Deshpande approached the Personnel Manager with a grievance that he was not getting his wages to which he was legitimately entitled. Suresh and Direj union representatives, accompanied Sunil Deshpande to the Personnel Manager.
Questions:-
As a Personnel manager, how will you deal with this grievance of Mr. Deshpande.
Case No. 3
A Company which was started 6 years back on a humble beginning with 50 workmen on a turnover of 20 lakhs had grown in leaps and bounds and today the turnover of the company is 3 crores with a manpower strength of 300 employees.
The wages in this company was being paid on the 4th of the subsequent month right from the inception of the company. Most of the employees were residing in the city. The company’s factory was situated in a remote place about 25kms. from the city. One day when the cashier went to the bank to collect cash from the Central Bank of India, on his way back he was stopped by dacoits, who at gunpoint took away the entire cash of Rs.4 lakhs that was meant for disbursement of wages on the 4th of that month. The casher returned bare handed to the factory and informed the Managing Director about the cash being taken away by the dacoits.
The Managing Director summoned a meeting of the Union Committee and appraised them of the happenings and expressed his inability to pay wages on 4th of the month. He said that he would arrange to pay the wages by the 15th of the month. The Union leaders positively responded to the suggestion of the Managing Director, but complained that practically every month they come across many grievances of the workmen particularly relating to wages being paid for less number of days than worked, overtime wages being paid for less numbers of hours than worked, less/more society deductions etc. which have to be adjusted in the subsequent months.
The Managing Director calls the Personnel Manager and tells him about the grievances of the employees regarding the payment of wages. The Personnel Manager tells the Managing Director about the problems faced by the Personnel Department for paying wages on the 4th of each month. He tells him that the Consumer Price Index numbers on which the Dearness Allowance is paid is available only on the 1st or 2nd of the month. The leave cards of the workmen dully filled in and sanctioned by the Department Heads comes very late to the time office. In many cases leave cards do not reach the Time office even on the 2nd of the month pertaining to the leave availed during the last week of the previous month. The overtime slips duly authorized and sanctioned by the Dept. Head comes to the Personnel Department only on the 2nd or 3rd of the month. He further tells the Managing Director that on the 2nd or 3rd of the month, the Personnel Dept. employees have to work right up to the early hours of the morning to prepare the wage roll.
The Managing Director after hearing the problems of the Personnel Department is upset .He tells the Personnel Manager to have a dialogue with the Union and change the date of payment of wages from the 4th to the 7th of the month.
He also tells the Personnel Manager to ensure that hence forth the wages should be paid by Cheque and not by cash as he does want to take risk of getting large sum of money in cash from the bank.
As a Personnel/HRD Manager how will you bring about changes in an amicable manner without affecting the cordial and peaceful industrial relations
that are existing in the Company. Also examine the legal provisions that are to be followed to bring about the above changes.
Some more case studies:
A) In a Factory employing 300 workers an accident takes place resulting in death of a worker, The accident took place on account of non compliance with the provisions of the Chapter IV of the Factories Act, 1948. The factory inspector has prosecuted the Occupier and Manager of this factory for violation of the provisions of the Factories Act, 1948. The Occupier wants to know from you as to what is the maximum and minimum punishment that can be awarded to him under the Factories Act.
B) Ramesh, a workman, working in the machine shop of XYZ Company meets with an accident resulting in 20% loss of earning capacity. Ramesh was drawing a wage of Rs. 6440/- per month. His age was 20 years and the relevant factor for the purpose of calculating compensation was 206.23. Calculate the compensation payable to Ramesh under the Workmen’s Compensation Act, 1923.
C) Ashok, a Supervisor working in Bajaj Industries has been a member of the New Pension for the past 22 years. He has now resigned from the services of the Company at the age of 54 years. He was drawing basic wage and dearness allowance of Rs. 8000/- per month. He wants to draw pension immediately on separation from the services of the Company. Calculate the pension which Ashok should draw.
D) In a Company employing 300 workmen, the wages have not been paid on the seventh of the month on account of financial crunch. Some five workmen of this Company have filed a complaint with the Authority under the Payment of Wages Act, 19936. The Director of the Company has received a summons from the Authority under the Payment of Wages Act, 1936. The Director of the Company has passed on the summons to you and asked for your comments on the same. The Director of the Company wants to know as to what is his liability under the Payment of Wages Act, 1936.
E) The wages of employees of XYZ Company is being paid on the 4th of every month. The Director of the Company now wants the wages to be paid on the 7th of the month instead of the 4th of the month. You are the Personnel Manager of this Company. The Director wants to know from you as to how the change is to be brought about.
F) The General Manager of a Company found that 15 of his workmen had stopped work and were holding a meeting in the corner of the machine shop He immediately contacted the Personnel Manager and asked him whether these workmen had taken permission for holding the meeting. When the Personnel manager told him that no permission had been taken, he told the Personnel Manager to take stern action against these 15 workmen so that no workmen in future could dare to stop work and hold meeting in the factory premises. Inform the General Manager about the action you intend to take against these 15 workmen.
Case No. 1:
In a Factory employing 300 workmen, there is a very strong Union led by the Bharatiya Kamgar Sena. The previous settlement had expired on 31st of March 2002. The Union had demanded a wage increase of Rs. 2000 per month per workmen. The Management had told the Union Committee Members that it was not in a position to pay such a hefty increase since the Company was facing recession on account of competition arising out of the recession that was prevailing in the market. The Management however told the Union that it was prepared to give an increase of Rs.800 per month per workman for which they would have to give an overall improvement in productivity of 10%. The Union did not accept the offer of the Management. It told the Management that their minimum expectation is Rs. 1500 per month per workmen without any condition of improvement in productivity. They can think of improvement in productivity for any offer above Rs.1500 per month. This led to a stalement. The Workmen under the instructions of the Union resorted to a slow down in work.
They were found loitering about here and there having informal meetings and on many occasions refused to carry out the lawful and reasonable orders of the superiors. The productivity of the Factory had fallen down to 50% and it became difficult for the Management to carry out the activities in such a tense atmosphere.
The Managing Director of this Company is very much upset with the way the things are going on in the Factory. He tells the Chief Personnel Manager of the Company to chalk out a plan of action to deal with the situation.
As the Chief Personnel Manager of this Company chalk out a plan of action you feel suitable to deal with the situation.
Case No. 2
Sunil Deshpande T.No. 2121 is working as a turner for the last 15 years in a Chemical Industry employing 1400 employees. The wages are distributed on the 10th of each month in this concern.
Sunil Deshpande was on privilege leave from 4th to 11 February 2002. He reported for duty in the second shift at 3.00 p.m. on 13th February, 2002. Monday being the date for payment of unpaid wages, Sunil Deshpande went to the cash counter to collect his wages. The Cashier noted Sunil Deshpande’s ticket number and searched for his wage packet and he found that the said wage packet was already issued. The Cashier told Sunil Deshpande that he was already paid his wages.
Sunil Deshpande was surprised and told the Cashier that he had yet to collect his wages and that’s why he had come. On this the Cashier showed Sunil Deshpande the wage slip bearing his signature. After some time, the Cashier asked for the identity card from Sunil Deshpande to check up the validity of the signature. Sunil Deshpande said that he had lost his identity card but added that the signature on the payment slip was not his.
Sunil Deshpande approached the Personnel Manager with a grievance that he was not getting his wages to which he was legitimately entitled. Suresh and Direj union representatives, accompanied Sunil Deshpande to the Personnel Manager.
Questions:-
As a Personnel manager, how will you deal with this grievance of Mr. Deshpande.
Case No. 3
A Company which was started 6 years back on a humble beginning with 50 workmen on a turnover of 20 lakhs had grown in leaps and bounds and today the turnover of the company is 3 crores with a manpower strength of 300 employees.
The wages in this company was being paid on the 4th of the subsequent month right from the inception of the company. Most of the employees were residing in the city. The company’s factory was situated in a remote place about 25kms. from the city. One day when the cashier went to the bank to collect cash from the Central Bank of India, on his way back he was stopped by dacoits, who at gunpoint took away the entire cash of Rs.4 lakhs that was meant for disbursement of wages on the 4th of that month. The casher returned bare handed to the factory and informed the Managing Director about the cash being taken away by the dacoits.
The Managing Director summoned a meeting of the Union Committee and appraised them of the happenings and expressed his inability to pay wages on 4th of the month. He said that he would arrange to pay the wages by the 15th of the month. The Union leaders positively responded to the suggestion of the Managing Director, but complained that practically every month they come across many grievances of the workmen particularly relating to wages being paid for less number of days than worked, overtime wages being paid for less numbers of hours than worked, less/more society deductions etc. which have to be adjusted in the subsequent months.
The Managing Director calls the Personnel Manager and tells him about the grievances of the employees regarding the payment of wages. The Personnel Manager tells the Managing Director about the problems faced by the Personnel Department for paying wages on the 4th of each month. He tells him that the Consumer Price Index numbers on which the Dearness Allowance is paid is available only on the 1st or 2nd of the month. The leave cards of the workmen dully filled in and sanctioned by the Department Heads comes very late to the time office. In many cases leave cards do not reach the Time office even on the 2nd of the month pertaining to the leave availed during the last week of the previous month. The overtime slips duly authorized and sanctioned by the Dept. Head comes to the Personnel Department only on the 2nd or 3rd of the month. He further tells the Managing Director that on the 2nd or 3rd of the month, the Personnel Dept. employees have to work right up to the early hours of the morning to prepare the wage roll.
The Managing Director after hearing the problems of the Personnel Department is upset .He tells the Personnel Manager to have a dialogue with the Union and change the date of payment of wages from the 4th to the 7th of the month.
He also tells the Personnel Manager to ensure that hence forth the wages should be paid by Cheque and not by cash as he does want to take risk of getting large sum of money in cash from the bank.
As a Personnel/HRD Manager how will you bring about changes in an amicable manner without affecting the cordial and peaceful industrial relations
that are existing in the Company. Also examine the legal provisions that are to be followed to bring about the above changes.
Some more case studies:
A) In a Factory employing 300 workers an accident takes place resulting in death of a worker, The accident took place on account of non compliance with the provisions of the Chapter IV of the Factories Act, 1948. The factory inspector has prosecuted the Occupier and Manager of this factory for violation of the provisions of the Factories Act, 1948. The Occupier wants to know from you as to what is the maximum and minimum punishment that can be awarded to him under the Factories Act.
B) Ramesh, a workman, working in the machine shop of XYZ Company meets with an accident resulting in 20% loss of earning capacity. Ramesh was drawing a wage of Rs. 6440/- per month. His age was 20 years and the relevant factor for the purpose of calculating compensation was 206.23. Calculate the compensation payable to Ramesh under the Workmen’s Compensation Act, 1923.
C) Ashok, a Supervisor working in Bajaj Industries has been a member of the New Pension for the past 22 years. He has now resigned from the services of the Company at the age of 54 years. He was drawing basic wage and dearness allowance of Rs. 8000/- per month. He wants to draw pension immediately on separation from the services of the Company. Calculate the pension which Ashok should draw.
D) In a Company employing 300 workmen, the wages have not been paid on the seventh of the month on account of financial crunch. Some five workmen of this Company have filed a complaint with the Authority under the Payment of Wages Act, 19936. The Director of the Company has received a summons from the Authority under the Payment of Wages Act, 1936. The Director of the Company has passed on the summons to you and asked for your comments on the same. The Director of the Company wants to know as to what is his liability under the Payment of Wages Act, 1936.
E) The wages of employees of XYZ Company is being paid on the 4th of every month. The Director of the Company now wants the wages to be paid on the 7th of the month instead of the 4th of the month. You are the Personnel Manager of this Company. The Director wants to know from you as to how the change is to be brought about.
F) The General Manager of a Company found that 15 of his workmen had stopped work and were holding a meeting in the corner of the machine shop He immediately contacted the Personnel Manager and asked him whether these workmen had taken permission for holding the meeting. When the Personnel manager told him that no permission had been taken, he told the Personnel Manager to take stern action against these 15 workmen so that no workmen in future could dare to stop work and hold meeting in the factory premises. Inform the General Manager about the action you intend to take against these 15 workmen.
