Page 36 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes
formulated, the need of the day at that time was higher production. Accordingly, the focus
in the earlier schemes was achieving higher productivity. However, in the current fiercely
competitive scenario where the business and profit position is under serious threat, volumes
alone will not be sufficient and the thrust should be on improving quality while reducing
cost and providing better customer service. In the spirit of maintaining healthy industrial
relations, union was invited for discussions on the new incentive scheme. The management
has had several rounds of discussions with the union but unfortunately, the union adopted
a totally non-cooperative attitude and instead of appreciating the move by the management
the union demanded an incentive scheme which was highly unreasonable having exorbitant
financial implications, which the company can ill-afford.
To pressurize the management to concede to their demand, union resorted to various
coercive and illegal activities. On the instigation of union, the workmen resorted to go-
slow, demonstration, dharna, slogan-shouting, hunger strike, threat, intimidation and
physical assault etc. , inside as well as outside of the factory in violation of the court
injunction order and in total breach of various provisions of standing orders and the
settlement dated 06.02.1998. From 03.10.2000, the workmen on behest of the union resorted
to regular tool down strike virtually bringing the production to a halt resulting in huge
financial loss to the company.

Despite the agitation, management continued to have dialogue with the union but the
union outrightly refused to discuss the management’s proposal and took a very firm and
rigid stand that they would only be interested in continuing the discussion if management
is ready to consider the scheme proposed by them.
In total violation of the certified standing orders, the settlement dated 06.2.1998, the code
of conduct agreed by the union as per settlement dated 27.07.1987, workmen at the instance
of the union’s representatives resorted to the illegal activities as mentioned above, thereby
disrupting the production and endangering the safety of the plant. They kept on escalating
their agitation day-by-day and brought a situation where prevailed a law of jungle. The
management therefore could not allow the workmen to stay inside the plant and indulge
in go-slow, tool down strikes and in various other illegal activities mentioned above

Having found no viable solution possible with the union, management notified the revised
scheme on 11.10.00 effective from 1.4.99. From 12-10-2000, therefore, workmen have been
advised to enter the factory after giving an undertaking in writing that upon joining their
duties, they shall not indulge in any ‘go- slow’ or resort to tool-down strike or otherwise
indulge in any other activity which may adversely affect the production and discipline
and that they shall give normal output and perform their duties in a disciplined manner.
The undertaking thus demanded is only a reaffirmation of conduct agreed to by the union
and the workmen in terms of the Certified Standing Orders.
In a suit filed by the union in the civil court seeking injunction against the said undertaking,
the court in rejecting the Union’s application has held:
“A bare perusal of the said good conduct undertaking makes it abundantly clear that there
is no change of any condition of service of the workmen. ……it appears that prima facie,
it is absolutely necessary in the interest of smooth functioning of the factory that all
workmen give the good conduct undertaking and join their duties….in my opinion, the
defendant is prima facie, doing no wrong in asking for such an undertaking which is
conformity with law.”
Finally on 08-01-2001, a settlement was signed between the union and the management
wherein the union agreed to end the strike and accept the incentive scheme notified by the

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