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Unit 11: Trade Unions Act, 1926
every member of the executive of the trade union, is punishable with a fine upto 5. If this Notes
default continues, an additional fine up to 5 for each week after the first week during which the
default continues, may be imposed subject to an aggregate fine of 50. (Sec. 31 and 32)
Self Assessment
Fill in the blanks:
13. Any two or more registered Trade Unions may become ........................... together as one
Trade Union with or without dissolution or division of the funds of such Trade Unions.
14. Where the dissolution of a registered Trade Union has been registered and the rules of the
Trade Union do not provide for the distribution of ......................... of the Trade Union on
dissolution.
15. The Act provides penalty of fine up to ........................... for making any willful false entry.
16. If this default continues, an additional fine up to ............... for each week after the first week
during which the default continues, may be imposed subject to an aggregate fine of 50.
Case Study Philips India – Labour Problems at Salt Lake
he 16th day of March 1999 brought with it a shock for the management of Philips
India Limited (PIL). A judgement of the Kolkata High Court restrained the company
Tfrom giving effect to the resolution it had passed in the Extraordinary General
Meeting (EGM) held in December 1998. The resolution was to seek the shareholders’
permission to sell the Color Television (CTV) factory to Kitchen Appliances Limited, a
subsidiary of Videocon. The judgement came after a long drawn, bitter battle between the
company and its two unions Philips Employees Union (PEU) and the Pieco Workers’
Union (PWU) over the factory’s sale.
PEU president Kiron Mehta said, “The company’s top management should now see reason.
Ours is a good factory and the sale price agreed upon should be reasonable. Further how
come some other company is willing to take over and hopes to run the company profitably
when our own management has thrown its hands up after investing 70 crores on the
plant.” Philips sources on the other hand refused to accept defeat. The company immediately
revealed its plans to take further legal action and complete the sale at any cost.
PIL’s operations dates back to 1930, when Philips Electricals Co. (India) Ltd., a subsidiary
of Holland based Philips NV was established. The company’s name was changed to Philips
India Pvt. Ltd. in September 1956 and it was converted into a public limited company in
October 1957. After being initially involved only in trading, PIL set up manufacturing
facilities in several product lines. PIL commenced lamp manufacturing in 1938 in Kolkata
and followed it up by establishing a radio manufacturing factory in 1948. An electronics
components unit was set up in Loni, near Pune, in 1959.
In 1963, the Kalwa factory in Maharashtra began to produce electronics measuring
equipment. The company subsequently started manufacturing telecommunication
equipment in Kolkata.
In the mid-1990s, Philips decided to follow Philips NV’s worldwide strategy of having a
common manufacturing and integrated technology to reduce costs. The company planned
Contd....
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