Page 220 - DMGT516_LABOUR_LEGISLATIONS

Unit 8: Collective Bargaining

Thus negotiations is a tactics where in both the parties try to move from their ideal Notes
position to a settlement point which is mutually acceptable. The settlement depends on
the relative bargaining strength and skills of negotiation.

Case Study Dilemma of Negotiation: Dolphin Limited

olphin Limited was a pioneer in the manufacture of construction equipments and
hydraulic earth moving equipments. The first unit was set up in Bangalore. At
Dthat time, Escorts- JCB was a pioneer in wheeled earthmoving equipments. Since
there was a good potential for these equipments, Dolphin Limited also set up a unit for
manufacturing wheeled equipments as it was not possible to expand their existing
Bangalore unit. They searched for new location keeping in mind availability of land,
capital subsidy, exemption of sales tax etc. Dolphin Limited decided to set up this unit at
Pithampur, Indore which was a notified Industrial area. State Government also assured
the company to provide adequate infrastructural facilities with attractive tax benefit
schemes. The work started in the year 1989 on the 40 acre site at Pithampur. The company
entered into technical collaboration with the CASE Corporation (a U.S. based corporation),
the market leader in the field of excavators and other earthmoving and construction
equipments.
Production commenced in the year 1991. It was belatedly realised that CASE passed on an
outdated design which was being used in Brazil. Hence, it was not found fit for Indian use
and field failures were reported. This affected the image of Dolphin Limited in the market.
After this, the company engineers did a lot of work on this Brazilian version and tried to
improve it. Some improvements were made and the products were offered for Indian use
as a new version Model II. Later, Model III was launched with some more improvements
in the year 1997-98. Despite all efforts, the sales and performance results were not up to the
expectations of Dolphin Limited whereas the market for construction and earthmoving
equipments was growing very fast. The unit was started with 70 employees having matric
qualification with ITI background. Only a few employees had past experience in any other
company and for most of them, this was the first employment. In the beginning there was
no formal union in the unit. Employees used to approach the management directly for
their problems. Because of growing number of individual grievances, problems and other
issues, it became difficult for the management to deal with employees individually.
Therefore, management started taking interest in having formal representation of the
workers.
In 1993, Dolphin Limited Shramik Sangh was established. Initially, it was an internal
union without affiliation to any outside recognised union body. The first charter of demands
was submitted in October, 1993 and the settlement was signed in March, 1994 which was
made effective from January, 1994 for a period of four years as per standard Dolphin
Limited negotiation practices. The settlement was reached without much difficulty. Initially,
the tenure of office-bearers of the union was for one year. It was realised by the union
office-bearers that a one-year period was not sufficient and it was extended to three years.
Similarly, office-bearers also felt the need to get themselves associated to Bhartiya Kamgar
Sena (BKS), a recognized union at Powai, the main unit of Dolphin Limited. BKS was an
associate of Shiv Sena. This was done to exert more pressure on the management.

Contd...

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