Page 221 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes
As the settlement was about to expire, the then office-bearers started criticising the previous
settlement. They promised an ambitious wage package for workers coupled with a number
of other beneficiary measures. Since BKS was also involved, this package became a prestige
issue for both the parties. The new charter of demands incorporating 32 demands was
submitted to the management in March, 1998 after a delay of three months from the expiry
of the last settlement.
The major issue of the charter was four times hike in the existing salary i.e., from 3,000
to 12,000. While submitting the proposal the union people were well aware of the fact
that the salary figure of 12,000 was irrational but they deliberately demanded to pressurise
and to negotiate for a higher gain. The office-bearers took workers into confidence and
told them that in any way they would get hike of 5,000 and asked the workers to keep
patience if they wanted a better deal.

Although 50 meetings were held between management and union leaders, nothing concrete
emerged. Even the help of BKS was sought and one person was deputed by BKS to smoothen
the negotiation process, who incidentally was also handling the Ahmednagar unit of
Dolphin Limited. Because of the dual involvement he could not concentrate on the
Pithampur issue. By this time the workers had lost their patience and faith in the office-
bearers. By January, 1998 workers informally decided to opt for a "Go-Slow" movement of
their own even without bothering to inform their leaders. After some time, this hidden
movement became visible and production came down. Similarly, during February, 1998
they started other pressure-building tactics like abusing, slogan - shouting, etc. The situation
became worse, when they started tampering with the products, which created a lot of field
failures tarnishing the image of the company. It is important to note that at this time
workers were not under the control of office-bearers. Management had decided not to
compromise with such activities. Since, the local office-bearers were not able to control
the situation they realised the need for more serious and active involvement of BKS.
The union people, including BKS, were informed by management that the activities like
slogan-shouting, damaging the products, etc., should be stopped, for resumption of the
negotiation process. Finally, agreement was arrived at with a clear understanding that the
workers would make up the production loss to the company and this new settlement
would be applicable from January, 1999 for a period of 4 years. The major outcomes of the
package were as under:
1. Average salary hike was of the order of 2,500 with minimum of 4,600.
2. Interest free festival advance was raised from 1 ,000 to 2,500.

3. The number of casual leaves was increased from 7 to 8, sick leaves from 6 to 7 and the
process of leave encashment started.
4. A number of social security measures were introduced, such as group insurance
scheme, pension scheme and medical claim, etc.
[This case was developed by Prof. Pradeep Puranik (Prestige Institute of Management and
Research, Indore), Dr. Dinesh Seth (NITIE, Mumbai), Dr. D.P Goyal (Punjab Schools of
Management Studies, Punjab University, Patiala), Dr. Sandeep Kulshreshtha (Indian Institute
of Tourism and Travel Management, Gwalior), Prof. A. Rajasekhar (School of Mangement
Studies, University of Hyderabad, Hyderabad) in the Fourth National Case Writing
Workshop organised by Prestige Institute of Management and Research, Indore and
sponsored by AIMS (Association of Indian Management Schools) on March 11-13, 2000.]

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