Page 261 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework

Notes 4. Reduction in personnel expenditure

5. Team building training
The Rampur plant of Norman had come a long way since its inception. In the words of
Trivedi “despite all the bottlenecks we have achieved a satisfactory level of productivity.
We still intend to continue doing so by various means. However, I want to build this plant
as a community where each member’s commitment with the plant remains high. This can
only be achieved by inculcating the ownership value. We sincerely believe that this can only
be developed by creating a community of Norman in which every member is ensured of a
minimum standard of living with all basic amenities and worry free life away from work.
We intend to do so by providing medical, educational and vocational training facilities for
their families, thereby developing trust between the management and the workers:”
The case was developed by Dr. S.S. Bhakar, Prof. Prashant Mishra (Prestige Institute of
Management and Research, Indore), Dr. Ravindra Jain (Pt. Jawahar Lal Nehru Institute
of Business Management, Vikram University, Ujjain), Prof. Shantiswaroop (Dayalbagh
Educational Institute, Agra) and Mr. K. Shivappa (Kousali Institute of Management
Studies, Karnatak University, Dharwad) in the Fourth National Case Writing Workshop
organised by Prestige Institute of Management and Research, lndore and sponsored by
IMS (Association of Indian Management Schools) on March 11 -13, 2000.

Questions
1. Does formation of trade unions help organisations improve industrial relations?
2. Was it a right strategy to nurture pro-management union leaders?
3. Was it a right strategy adopted by Jain not to recognise and encourage outside
leadership for the plant union?
4. “The strategy to instill fear in the minds of workers to improve their productivity
was in the interest of the organization.” Discuss.

5. In your view, what action should have been taken by the management at various
stages to improve labour-management relations?
6. In your view, what are the thrust areas in HR strategy which may improve the
competitive strength of the workers?

11.10 Summary

A trade union is a continuous association of wage-earners for the purpose of maintaining
and improving the conditions of their working lives.

Under the Trade Union Act of 1926, the term is defined as any combination, whether
temporary or permanent, formed primarily for the purpose of regulating the relations
between workers and employers or for imposing restrictive conditions on the condition of
any trade or business and includes any federation of two or more unions.
Trade unions in India, as in most other countries, have been the natural outcome
institutionally, the trade union movement is an unconscious effort to harness the drift of
our time and reorganise it around the cohesive identity that men working together always
achieve of the modern factory system. The development of trade unionism in India has a
chequered history and a stormy career.

In 1920 All India Trade Union Congress (AITUC) was formed. The first meeting of the
AITUC was held in October, 1920 at Bombay (now Mumbai) under the presidentship of
Lala Lajpat Rai. The formation of AITUC led to the establishment of All India Railwaymen’s

Federation (AIRF) in 1922. Many Company Railway Unions were affiliated to it.

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